Has Bitcoin proven to be a reliable store of value in 2020? Experts‘ answers
Experts in blockchain and crypto technology answer the question about Bitcoin’s path in 2020
Without a doubt, 2020 was unlike any other year of the 21st century: the COVID-19 pandemic, the relentless money printing of governments around the world, the new normal of „lockdowns“ and „social distancing,“ protests against racial discrimination and police violence, and so on. Some even called it „the worst year ever.“ But, as they say, even the worst things have a silver lining. The most important thing is to learn from everything Bitcoin Up we have faced and to improve our world and our future, as there are some problems we have to solve ourselves.
It is also true that 2020 was a significant year not only for people around the world, but also for Bitcoin (BTC): the third halving, the growing attention from institutional investors and global regulators, the 12th anniversary of its white paper, etc. Some have even described the genesis blockchain as the ‚New Testament‘ of finance, and others suggest using it for the utopian idea of a universal basic income. Bitcoin received global attention due to the Twitter hack in mid-July, bringing the crypto community together in defence of its integrity after the event again combined the terms ‚Bitcoin‘ and ’scam‘ in the same headline. In October, PayPal announced the integration of crypto payments, and in November Bitcoin landed on the Wall Street Journal homepage for its 80% rise.
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In the early 2020s, it would have been hard to imagine how the world would change and how fast these changes would be. Despite all the negative consequences of the ongoing crisis due to COVID-19, there have been some positive developments, at least within the crypto sector. For example, Bitcoin’s volatility has decreased since its peak in mid-March, and the pandemic has highlighted the main cryptocurrency’s most important asset: its decentralised nature. Some have even said that the pandemic has underlined the benefits of cryptocurrencies for the world. And while Europe moved towards a cashless world, the US remained more conservative and did not want to give up paper money.
Experts explain how the COVID-19 pandemic has affected the crypto sector
The impact of COVID-19 has made one thing clear: the current financial system has serious problems that could be solved by Bitcoin and the technology on which it is based. And the similarities between the two recent financial crises, the 2008 and the 2020 pandemic crises, revealed the systemic problems of centralised finance. While the first crisis gave birth to Bitcoin, the current one has pushed people towards decentralised technology and Bitcoin on a large scale, in the context of the global economic recession. Some even believe that over the next decade Bitcoin will play a key role in the transformation of the global economy, dubbed „The Great Reset,“ and the mass adoption of crypto will be driven by the millennial generation.
It is estimated that since the beginning of the year in May, central banks have printed $15 trillion to support anti-pandemic measures and save global economies, sacrificing the US dollar, as described by some. And these measures have shifted people’s attention to alternative financial instruments, making Bitcoin a hedge against inflation and even an alternative to traditional finance. Some have even suggested that governments should make a monetary transition to Bitcoin to solve public debt problems.