Bitcoin has only been around for a little over a decade. Since then, its exchange rate has grown by more than 100,000,000 percent, from a level when it was practically worthless, to now, when it is facing an economic crisis like the world has never seen before, while becoming an absolutely essential asset for investors, and perhaps soon, a necessity for everyday life. Bitcoin: the crisis will strengthen the cryptocurrency PrimeXBT's team of analysts has compiled data that shows exactly how and why bitcoin is becoming a fundamental asset in the new post-pandemic world. Bitcoin is unlike anything that existed before. Instead of an asset share based on the valuation of a company or commodity whose price fluctuates based on supply and demand, Bitcoin is a cryptocurrency underpinning a decentralized blockchain network. This powerful and disruptive financial technology has the potential to change the world, and some of the world's brightest minds - including Twitter CEO Jack Dorsey - believe it could eventually replace the dollar as the global reserve currency in the Internet age. Like the Internet before it, the new technology is not fully understood, and certainly not fully exploited. Billionaire venture capitalist turned author of many early success stories from the dotcom market, Marc Andreessen, argues that Bitcoin is as transformational and transcendent in terms of technology as the early Internet or the first computers. The new financial asset and emerging technology born during the Great Recession is being advertised as digital gold, a store of wealth, a currency, a safe haven, a proximity payment option, and more. Bitcoin has it all, and that's just scratching the surface of why cryptocurrency is becoming a staple asset for many investors. World Health Organization's cash warning prompts rise in contactless payments In early 2020, a pandemic has effectively shut down our world. Authorities made these lockdown decisions to stop a larger outbreak and prevent widespread death. Retail stores were closed, travel was restricted, and consumer spending moved almost entirely online. For those who had to shop in places like grocery stores or where other basic necessities are sold, the World Health Organization recommended relying heavily on contactless payment options like Venmo, Apple Pay, and even Bitcoin. Using these payment methods, users can scan a QR code or, with NFC technology, make payments without handling tainted cash. Bitcoin exists only on the blockchain. There is no physical form of it that could lead to exposure to some disease, virus, bacteria or worse. In a post-pandemic world, this is extremely important. Be your own bank in a quarantined environment The closure of businesses around the world has also led to a huge increase in digital payment methods due to increased online spending. Both Mastercard and VISA have seen extreme increases in digital transactions, especially in Latin America and other countries where fiat money was king. In these same regions, such as El Salvador, Bitcoin is fueling local economies that lack access to traditional banking infrastructure. By allowing users to be their own banks, BTC is distributed locally for local villagers to then exchange coins for groceries and other products. Without Bitcoin, many people would be unable to pay for essentials in countries with limited infrastructure and access to financial services. The increase in volume at LocalBitcoins in Latin American regions further demonstrates the importance of Bitcoin in areas where access to digital payments is less common and the cryptocurrency is proving more reliable and accessible. Safe Haven In other countries where money can be printed at the whim of the government, such as the United States, hedge fund managers are looking to cryptocurrency as a hedge against the hyperinflation that can result from monetary policy. Efforts to stimulate the United States and other global economies have led to an influx of dollars into the market. The flood of currency reduces the real value of the asset, increasing the cost of everything associated with it. Investors have long bought gold for this very reason, but now they are also reaching for Bitcoin and assets that have much in common with the precious metal. Paul Tudor Jones, a famous hedge fund manager, argues that Bitcoin may be the fastest horse to escape inflation and has compared the asset to gold in the 1970s. At the time, bullion cost just $35 per ounce and was pegged to the dollar. After the dismantling of the Bretton Woods system, gold rose to more than 1,800
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