We here at Drover Rideshare aren't only passionate about providing the best rideshare in Nashville and reducing our carbon footprint – we also like to stay on top of any current news that the tech world has to offer.
One thing we find particularly interesting is cryptocurrency. Crypto has been around for a while, and since its rise in popularity, many things have happened. The rise of crypto as a payment platform and savings option has driven many people to research the latest that the industry has to offer.
It is clear that Bitcoin is different from regular currencies, but it has been around for a while and is slowly becoming a standard part of almost every economy. However, the current state of this cryptocurrency during the coronavirus pandemic boggles even the best economic experts around.
This article will explore Bitcoin and how it stayed persistent through the coronavirus-induced economic collapse.
Bitcoin | The Past Performance
Bitcoin was launched after the 2008 global economic crisis in 2009, but it peaked in 2017. In 2017, seemingly everyone was investing in Bitcoin. The price rose until it dropped rapidly in a matter of months.
Bitcoin is known for seemingly crashing out of nowhere. In just a year from December 2017 to December 2018, Bitcoin lost over 83% of its value, and it would take some time for the cryptocurrency to stabilize again.
There is an ongoing debate about whether Bitcoin should be considered as a store of value, but one thing remains; these sudden and abrupt fluctuations discourage a lot of people from investing in the cryptocurrency market.
Nevertheless, Bitcoin itself put cryptocurrencies into the spotlight, thus paving the way for multiple altcoins such as Etherum, Chainlink, Litecoin, etc.
Bitcoin During The Pandemic
Since the pandemic has started and many of us have been on lockdown, the interest in Bitcoin skyrocketed. Young investors and seasoned economy experts are flocking to Bitcoin as a viable way to increase and protect their funds and assets.
Cryptocurrency, by itself, has seen a massive influx of new investors due to the pandemic. With more people being stuck at home and looking for potential prospects, crypto seems to be a promising investment – but is it?
To determine the state of Bitcoin during the coronavirus pandemic, we'll look at Bitcoin's performance during 2020 so far.
1. The Start Of The Year | A Promising Rise
At the start of the year, Bitcoin seemed to have a promising jump in value. In January alone, Bitcoin rose from $6,965 to $9,501, a 26.7% rise in value. The famed Bitcoin halving was announced for 2020, which attracted many investors to the currency.
February seemed to have followed January's trajectory, with Bitcoin reaching a high of $10500 at the end of the month.
2. March | The Scare
February followed January in its upward trajectory, but March completely countered this. From the start of March, Bitcoin started dropping in value rapidly, reaching a 2020 record low of $6000 on March 19th.
After this initial scare, people were much wearier about this cryptocurrency's actual potential as a savings platform or long-term investment. Shortly after the drop, Bitcoin started to rise in price once again.
3. After March | The Continual Rise
After the drop to $6000, Bitcoin rose to $9810 on the eighth of May. Bitcoin is well known for its fluctuations, but this 39% rise in less than two full months isn't a regular occurrence.
In fact, after March, Bitcoin seems to be on a continual rise to this day. The halving happened in May and didn't affect the price much.
Crypto & Corona | Are They Connected?
Cryptocurrency doesn't seem to follow economic trends very much. While stocks have been plummeting due to the coronavirus pandemic, crypto has been following its unique trajectory – that doesn't mean that there is no connection between the market economy and the digital economy.
Cryptocurrencies are connected to the coronavirus but are experiencing different effects when compared to traditional assets. Oil prices and stocks have been suffering because of the pandemic – cryptocurrency has been flourishing due to the sudden influx of new investors and prospects.
The aforementioned plummet can also be attributed to the collapse of the S&P Index, so it's relation to the traditional economy can't be understated.
The coronavirus has impacted Bitcoin by quite a considerable margin and has affected the crypto market as a whole. Some specialists think that the coronavirus pandemic will make Bitcoin more popular and stable in the following months.
What Does the Future Hold for the Crypto Market?
The cryptocurrency market has always been an enigma to even the best investors and economists. The liquidity and the nature of the crypto market, especially Bitcoin, make it impossible to predict what the future holds.
Every year seems to have specialists that assume the EOY value of Bitcoin will exceed a preset amount, and it never does. While Bitcoin's fluidity and fluctuation might make it an ideal investment opportunity, the future is foggy at best.
Some of the most popular predictions are that Bitcoin will stabilize and continually grow, ultimately surpassing gold as the most popular investment opportunity. Bitcoin is a relatively safe investment if you're looking to store or grow your money.
Final Thoughts
Bitcoin is one of the most exciting financial prospects of the past decade. We here at Drover Rideshare are committed to providing the best that the world of ridesharing offers and keeping up with the latest tech news.
Crypto seems to be riding high during this pandemic and doesn't show any signs of stopping anytime soon. All we can do is keep up with the trends and invest wisely.
