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Following a steep decline in the price of Bitcoin and other cryptocurrencies over the past two weeks, the price of Bitcoin was up more than 8% Thursday and creeping back towards the $6000 mark.
With the coronavirus pandemic gripping the world, many experts are pointing to the digital currency market citing concerns over the handling of paper money.
Tech entrepreneur Calvin Ayre, who is pushing the cryptocurrency Bitcoin SV, tweeted out:
this is not that complicated. After the pandemic physical cash is dead and will be replaced with digital currency. Original Bitcoin Protocol scales to enable all global fiatcurrencies to be tokenized on top of it. No other tech exists to do this. simple.
— Calvin Ayre (@CalvinAyre) March 17, 2020
As far as investments go and in regard to Thursday's price increase, Omkar Godbole of CoinDesk writes:
The surge indicates many investors are selling everything, even safe havens like Japan's yen and Swiss francs, to move their money into dollars over fears of a coronavirus-led recession in the global economy. “If cash is king, then dollar cash is currently being world president," according to ING's head of global markets.
Bitcoin, however, isn't bowing down to the new cash overlord, and could see bigger gains if the U.S, equity markets put in a good performance in line with rising European stocks. At press time, the Euro Stoxx 50 – the eurozone's benchmark index – has added 1.3 percent to its value.
Fredrik Vold of CryptoNews.com echoed that sentiment.
Over the past few days, we have witnessed what can be described as a meltdown in several fiat currencies, as measured against the U.S. dollar. Among these is the euro, the Australian dollar, the Canadian dollar, and many smaller currencies such as the Norwegian krone, which have all seen historic sell-offs against the U.S. dollar.
The downwards trend for most fiat currencies has accelerated in recent days as a result of liquidations and margin calls in the stock market, which in turn has led investors to sell virtually all assets in a global rush to raise cash. Although this selling has even weighed heavily on the traditional safe-haven gold, bitcoin has remained more or less in consolidation mode after the crash on March 12.
- Aaron Goldstein, Gambling911.com
