If you’re into investing in online currencies or cryptocurrencies, you would expect that these cryptos will likely take over the financial crisis happening around the world since the spread of Coronavirus or COVID-19. However, it turned out different, when the leading crypto like Bitcoin continues to go lower value than what people expected. Why is this happening?
Why Bitcoin can’t save you from COVID-19?
As of today, Mar. 16, the Bitcoin value only ranges from $4,500 to $5,000. On Thursday, the biggest plunge in the crypto market happened when Bitcoin went from $7,600 down to $5,300. Critics claim back then that cryptocurrencies can be the “safe-haven assets” that every financial entity and person aims to have. What is happening now?
As explained via Nasdaq, cryptocurrencies’ image of being a safe haven to financial assets is now gone. The market does not see cryptos as secured anymore, and people are now getting doubtful that online currencies can be less risky compared to banks and other financial entities.
“… cryptocurrencies had essentially lost their safe-haven status and were once again perceived as a risky asset. That’s inconsistent with the basic investing thesis many cryptocurrency investors have in justifying their bitcoin holdings, and if it’s true, it would potentially be a big blow to the idea that bitcoin offers a safe alternative to fiat currencies and assets that are tied to those currencies,” written by Nasdaq.
Cryptos are still safer nowadays if you don’t want to get the virus
Though Nasdaq already explained why cryptocurrencies might not be the essential answer for financial crises around the globe, Bitcoin.com still believes that virtual currencies can still help the market during COVID-19.
World Health Organization or WHO reiterated that human contact and going out when you’re sick or feeling symptoms would never be a good idea for yourself or for those people around you. In this case, how can you make sure that your finances are still intact?
Bitcoin.com reiterated that using cryptocurrencies is still the best thing to do when financial crises are about to happen in your country.
“Using Bitcoin ATMs to send money abroad is a safe option, not only because of the high level of security for the transferred funds but also in terms of lower health risks as you can avoid visiting crowded bank branches or standing in lines in front of them,” written by Bitcoin.com.
Whether you’re a crypto advocate or not, we only want the same thing– for us to recover from these crises.