If you’ve been wondering how Bitcoin has been faring through the pandemic, Coin Sick has all the latest BTC Bitcoin news updates. As it happens, there have been some very surprising and interesting developments. It would be wise to look at them closely, because they may be indicating trends.
BTC Bitcoin News: Price
Bitcoin dropped to its year low as soon as the lockdowns started in mid-March, sliding to just under $5,000. However, it began to climb again almost immediately and rose steadily to a peak of more than $12,000 in mid-August. Although it’s retreated a bit again since then, there hasn’t been enough to indicate a serious downturn.
This would suggest that the pandemic has provided a positive environment for bitcoin prices, which is good to know. Since the price of gold reached record heights during the same period, it seems that investors were looking at bitcoin as an alternative to the dollar, which didn’t fare so well. Interestingly, older investors turned to gold, while millennials chose bitcoin.
Bitcoin has long been viewed as the poster child for risky investments. In a global pandemic, however, that risk has been turned on its head. Germs remain on cash, both paper and metals, making them ideal for passing along an infection. Under those circumstances, digital currency presents a safer alternative.
That doesn’t mean, of course, that bitcoin is entirely free from risk. In fact, Deutsche Bank claimed over the summer that there are actually 4 situations that could prove dangerous to bitcoins:
- Volcano eruption – although it would have to be one so epic as to be a global catastrophe
- World war – again, on the scale of the first two world wars
- Flu pandemic – far worse than the minor one we’re experiencing now, with a very high death rate
- Solar flare – the last of which occurred in 1859, so it would appear that we are due
Of all of these, Deutsche believes the solar flare would be the worst, because it would knock out power everywhere, making both mining and transactions impossible.
Presumably, the danger to bitcoin from volcanoes and war stems from the same consequences as the solar flares. They can all cut off power to an extent that would prevent bitcoin from being able to trade.
However, none of that applies to a pandemic. Here, the shortage would be more likely in the number of people mining and running the exchanges. Deutsche Bank made those predictions in June. We have now seen the progress bitcoin has made in the following months, and the opposite has happened, meaning this pandemic hasn’t been serious enough to remove players from the field in any significant way.
We know what happened to bitcoin prices when the pandemic hit, we know where they are while it’s still going on, and we’re reasonably sure that it will continue in the months ahead. So it’s possible that what we learned from the last several months may serve as a guide to how bitcoin will perform in the future.
As with all investments, past performance is no guarantee of future results. In this particular case, not only is the market volatile, but the entire world is, as well. Everyone invested in bitcoin would do well to just stay on top of the news and follow the situation closely. Visit Coin Sick for all the latest updates. And if you’ve been following bitcoin prices but haven’t yet invested because you still find the market overwhelming, you can sign up for our free 10-day email course that will easily teach you 80% of what the experts know.