The 21st century is the digital century, and it is dictating a new set of rules. For centuries, during numerous crises triggered by various events, gold has traditionally been considered the safe haven to rule them all. Indeed, despite some fluctuations, its price has risen over time, while in the main, it has held its value well, and unlike fiat currencies, has never seen its value go to zero. However, despite being the most popular metal when a crisis is associated with liquidity or inflation problems, gold has not always successfully passed through global crises unblemished, with an example being the Great Depression seeing private gold ownership banned by President Franklin D. Roosevelt in 1933, and gold fixed at US $35 from 1934 for many years thereafter.
Meanwhile, an original and top-performing crypto-asset Bitcoin is playing its own game, weakly correlating with market trends.
Naturally, this has led to Bitcoin and gold having long been competing with each other for the status of a more effective protective asset, and in this situation, crypto currencies have some advantages. Shiny metal owners depend on transport and logistics – sectors of the economy that are prone to supply disruptions and logistics issues, given the times. Meanwhile, Bitcoin is a digital currency that exists in cyberspace and is not constrained by state borders nor transportation problems. This aspect acquires particular relevance in times of global panic when familiar ties are disrupted, destroyed and order upended.
What is Bitcoin’s core attraction point?
Before Bitcoin stepped in to play a decade ago, people had no choice but to be caged into a defective currency system. The Bitcoin protocol, based on the voluntary participation of the parties, is not controlled by anyone, and makes it possible for everyone to store and transfer value in a currency that is resistant to manipulation by central banks and global financial institutions.
Bitcoin is Immune to Corona virus
Today, the world faces a problem of an unusual nature. The virus outbreak in Asia was first regarded as a looming, but distant threat, yet now leads to the collapse of many companies and economies. Even more, it threatens disruptions in supply chains at international levels that have been forged by the blood, sweat, tears, global wars, technological advancement, international competition, co-operation and global progress made over many decades.
Europe saw stocks fall to their lowest levels since 2012 as the corona virus continued to ravage share prices and investors weighed the extreme and unexpected economic hit. The pan-European Stock 600 index was down 2.7 percent, Germany’s Dax was 2.7 percent lower and Italy’s FTSE Mib had fallen 1.6 percent. During such events, investors need to search for a better investment instrument conducive to a much safer long-term perspective.
Digital money is safe-to-use to provide remote payments – a quality one merely thought of as a mostly just a convenience before, but now one that is more important than ever in a world that prefers electronic payments to the risk of handling potentially virus-infected physical currency.
Bitcoin may still be at an early stage of its lifecycle, and its price is unknown in the future, but it has been the most exciting and promising currency development since the development of fiat currency, and has ignited the imagination not only of billionaires, but the general public eager for an alternative to fiat currencies and precious metals.
As the world progresses and fights back against the pandemic, Bitcoin’s value and acceptance will only grow, from routine payments and daily coffees at Starbucks to much more sophisticated uses yet to be imagined and created by necessity being the mother of invention. Bitcoin has provided a new financial canvas with its users having painted an impressive first layer. Now the time has come to add more paint, life and color to the painting so a true masterpiece emerges and the full picture of endless possibility is undeniable to all.
- Italian bank to start a Bitcoin trading service amid COVID-19 outbreak
Italy’s Banca Sella is planning to launch a Bitcoin trading service amid surged crypto adoption following the corona virus outbreak. The trading will be conducted through the bank’s Hype platform. Banca Sella will act as an intermediary to mitigate potential security risks associated with crypto exchanges. As Italy is in lockdown, the bank is taking advantage of the increasing interest in Bitcoin as a safe way to transfer money internationally.
- Indian Supreme Court Rules in Favour of Crypto currency — RBI Ban Lifted
A historic day for the Indian crypto community, the Supreme Court has finally ruled on the case against the banking ban by the central bank, the Reserve Bank of India (RBI). The court held that the RBI circular which places a banking ban on the crypto industry is unconstitutional.
The RBI issued a circular in April 2018 banning regulated financial institutions from providing services to crypto businesses. The ban went into effect three months later and banks subsequently closed the accounts of crypto exchanges, forcing some of them to shut down, including Zebpay, Coindelta, and Koinex.