Is it worth investing in Bitcoin in 2020?

Is it worth investing in Bitcoin in 2020?

It is 2020 and just 11 years back, the world witnessed a new form of currency that is not regulated by any government and is independent of banks or any other form of intermediaries. The advent of modern technological advancements around the world has transformed the world into a digital globe and gave birth to the digital currency we now know as Bitcoin.

Impact of Covid-19 Pandemic on Bitcoin

The coronavirus outbreak that originated in China was labeled a pandemic by the World Health Organization in March 2020 and this is when the world got to see another crisis having the likes and magnitude of the Great Recession just after 12 years. Due to most of the countries going into temporary lockdown mode, almost every asset in the world fell in value. This is also when Bitcoin saw the greatest temporary volatility as it dropped by 45% to under $4,000, but it quickly rose to around $7,000 by April and since it has been trading at its pre-pandemic value. For now, it is considered by many economic experts to be stable for the foreseeable future.

Is it worth investing in Bitcoin in 2020?

Since a cryptocurrency like Bitcoin is devoid of any quantitative easing measures that other regular currencies face in the time of crisis, it is relatively more unstable and unpredictable than their conventional counterparts. The lack of a central management system introduces Bitcoin to the possibility of price gouging and several other scams that regular currencies are less likely to encounter.

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Rizvi Haider

Rizvi Haider

Entrepreneur and crypto enthusiast