Bitcoin, as of October 2021, has shown several ups and downs. Although it reached a new all-time best, breaking through the $60,000 mark, it could not hold the position for long. At the time of writing, the price is $54,584.
To get a sense of how volatile the market has been since the first successful rally in 2017. After hitting the first all-time high in 2017, it entered 2018 with a price of $13,000. However, by the time it reached the third quarter of 2018, the price of Bitcoin was below $4000.
Despite the fluctuating market, it holds its ground. Then came the pandemic. Experts were sure that finally, the time had come for the Bitcoin Bubble to burst. In fact, the Crypto industry clearly showed signs of collapse when Bitcoin’s price dropped to $3000 in the first phase of the pandemic.
However, to everyone’s surprise, it survived the fall and catapulted itself through the pandemic with a second successful rally. This rally ended with reaching a new all-time high at >$63,000. So what was it that made Bitcoin a Big Monet during the pandemic? Let’s find out together.
What Made Bitcoin The Big Money During COVID-19 Pandemic?
The start of the pandemic for Bitcoin was quite uncertain. People have already accepted the end of the Bitcoin Bubble. But slowly, the Bitcoin market started stabilizing itself, breaking record after record every day.
Here are the reasons which we believe helped Bitcoin flourish during the pandemic.
1. Depreciation In Fiat Currency’s Value
Everything started with the depreciation at the fiat currency’s price. With the pandemic, the global finance market took massive damage. To cope with the damage, nations started printing money. This reduces the price evaluation of the fiat currency on the global market.
Investors became wary of the monetization value of their currencies and started looking for an asset that could be used as a hedge against inflation. This is where they came across Bitcoin.
2. Acted Like An Alternative Asset During Pandemic
As investors rushed to secure their money in Gold and other commodities, some investors opted to bet on the less convenient asset, Bitcoin.
Both classes of investors certainly gained from their investment. However, those who risked Bitcoin gained handsomely. Seeing how Bitcoin performed when other assets failed to cope with their original prices, global investors started contemplating Bitcoin as their Go-To asset against inflation.
3. Limited Supply
The other reason that can be considered the underlying pillar for people showing trust in Bitcoin can be its limited numbers in the market. It may be noted that there can only be around 21 million Bitcoin in the market, and out of those, 18 million have already been mined.
Since the amount of Bitcoin cannot increase, it puts Bitcoin in the same league of Gold. Although the price fluctuation might not be as stable as Gold, the limited number will certainly define its price in the future.
4. 2020’s Successful Rally
Finally, we believe the recent rally of 2020 has helped people recognize the true potential of Bitcoin. The 2020 rally has not only helped people outline how Bitcoin will look like in the future but also helped to create awareness.
Thanks to the 2020 rally, today, almost every individual knows about Bitcoin or other Cryptocurrency. Though they might not know how they see the world, they certainly know them by name. This is a positive sign that people of all age groups have started accepting its existence.
After the fiat currency price started depreciating, people started looking for an asset that could store the monetary value without being affected by the pandemic. This is where investing in Bitcoin becomes the trend.
If you feel the same and want to become an integral part of the new financial year, open an account with Bitcoin Code and start investing.
With that, we conclude our article; we hope that you find this article helpful and learn why Bitcoin became the Big Money of the post-pandemic era.