Economic crisis had been one of the biggest challenge the pandemic had brought up. Almost all countries are suffering from it right now. It had caused massive damages to financial markets, stock markets, businesses and industries worldwide.
Investors are now seeing an unclear future for the global economy. They are now looking for ways that will enable them to survive through this economic jeopardy. Cryptocurrency had been on rise in the market promising great deals, and also seen by them as a great business deal as of now.
Cryptocurrency is now on the limelight in the rise of this pandemic. This was due to interruptions and damages recorded in central banks that provides fiat traditional currency. Crypto such as Bitcoin (BTC) had been continuously gaining a lot of interest from investors in the industry.
Possible inflation puts BTC and other cryptos on limelight
The current pandemic had mainly brought damages to industries and business worldwide. But not in the case of cryptocurrencies such as BTC. This current pandemic had pulled people and investors interest to cryptocurrencies.
Financial institutions which includes banks had been suffering from the impacts of this pandemic. News bulletin revealing that central banks are now pumping cash towards listing economies had brought worry to investors. For this move is believe to trigger a sudden growth in the inflation rate.
Overseeing this incidents, platforms and investors are seeing cryptocurrency could be an effective guard against this inflation. After BTC’s halving last week, they were flooded with appeals from future investors. These investors are seen to be fearing that traditional currency and money will lose its value due to inflation.
Crypto-analyst Simon Peters from eToro, stated that crypto tokens specifically BTC is gaining more support as the inflation hedges. Peters also believes that this will cause a new all-time high in token’s price within 18 months.
CEO Gavin Smith of cryptocurrency consortium Panxora, is seeing that while traditional markets is being uncertain, it can be expected that more investors will use crypto (BTC). This move by investors is to secure their assets against the possible inflation and currency depreciation.
First American Trust CEO, Jerry Braakman also stated that if inflation takes off, this will lead investors to look for things that keep a store of value. As to him BTC has this functionality that people are looking for.
As the threat of inflation in markets are present, it will lead investors to look for ways to ensure their assets. Currently they are seeing it on cryptocurrencies, leading crypto interest to rise as people’s trust to traditional currencies is eroding gradually.
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