FX.co ★ BTC to benefit from coronavirus crisis

The majority of economies are facing serious challenges due to the spread of the coronavirus. However, the exception is the cryptocurrency sphere. Analysts suggest that the ongoing crisis can be beneficial for digital assets since governments have no control on cryptocurrencies.

According to crypto enthusiasts, currently, authorities of several countries are busy keeping their economies aloft and mitigating the negative impacts of COVID-19. As a result, they simply have no time left for virtual currencies. At the moment, governments are focused on solving problems of the day and they do not interfere in the development of digital assets.

Experts believe that the coronavirus-driven collapse of the world economy and national currencies is likely to boost the cryptocurrency industry. From the point of view of Monash John Waz, an economist in the Australian National University, the value of digital cash is likely to increase due to the mistakes made by several governments in their efforts to contain the pandemic. If countries face problems with fiat money, authorities will be forced to resort to virtual currencies.

Currently, the digital market is also having a hard time. Thus, Bitcoin plunged once again along with other cryptocurrencies. According to analysts, BTC lost its value amid a large-scale liquidity crisis in the financial market. Only several assets, including gold, managed to retain their positions.

Monash John Waz suggests that Bitcoin is likely to compete with the greenback for the title of a safe haven asset in the medium and long terms. In order to prove his forecast, the economist mentions a few important BTC’s advantages, such as decentralization, independence from governments, and a high transaction speed which makes it a preferable payment means. The analyst believes in the safety of Bitcoin and expects virtual assets to play a central role in the renewed global economy after the end of the COVID-19 pandemic.