Cryptocurrency

Bitcoin and the FIAT Disaster

Bitcoin needs more feathers. The Bitcoin exchange rate has slipped back below the $ 5,000 mark and all the other crypto currencies with razed to the ground. It is currently the entire crypto market is not good. While it looks on the traditional financial markets are not much better. The Coronavirus has arrived and is driving the global markets in the direction of the South. The Central banks of this world pumps currently still FIAT in the market, in order to calm the Situation on the markets – currently without success.How is it in the current location to Bitcoin? Can we expect a further break-in or the worst is over already?

Bitcoin due to devaluation of FIAT reinforced

The Coronavirus not only keeps people in suspense, but, above all, the companies that currently have to struggle with supply shortages and declining demand. Bitcoin, although it is considered as a decoupled Alternative to the traditional market, can not withstand the panic, and falls further in price. However, Gold, which will be used in such times as a Store of Value and a safe haven, broke within a week to 9%. Such a strong slump hasn’t seen Gold in a long time.In the meantime, Central banks with cash infusions to stabilize the market. The FED (Federal Reserve, Central Bank of the United States) has made a few days ago, USD 1.5 trillion and just yesterday another 700 billion USD locker. The key rate has been reduced unscheduled to virtually 0%.The fresh money is now flowing slowly into the markets, does not seem to achieve the desired effect, the markets are still plunging. So what is left? Right, more from the Nothing created money.

The money-devaluation by the Central banks

The money supply has been increased in the last few days, and so the devaluation of our own FIAT goes ahead stocks slowly but surely, more. The Situation may aggravate further and as a result, the Central banks bring more money into the market to pump. Because of the FIAT pot, from which the Central banks draw is unlimited. This Inflation is playing Bitcoin in the cards, because this Problem is attacking BTC in the core – The people protect against the devaluation of the country’s own FIAT currency.Bitcoin is not only 21 million BTC are limited, but also has a fixed rate of inflation, which can not be changed. The power of Bitcoin for the “hardest” Asset of this world. Nevertheless, the course is currently from its negative side, and therefore also the role of BTC as a crisis-proof Asset is still in question.

BTC price soon in the direction of 0?

It will go for Bitcoin so more downhill? In my eyes there is hardly a way around it currently. The crisis has not yet arrived at the Peak. The panic of the people, and the senseless rush on toilet paper and noodles are not arrived in the USA yet. If it should come to a similar panic, then it goes downhill.The United States is currently the largest market for Bitcoin. If so, the people are in a panic, and in FIAT to escape, then Bitcoin will be resolved in this Moment, every Investment. FIAT is in such times of King. People want Cash to make your life’s necessary purchases and to protect themselves from the corona virus.Nevertheless, we should keep a little quiet. When you hear from different directions, that Bitcoin will soon run counter to 0, then you know that currently, only panic and irrational behavior in the markets prevails. This scenario is in theory, of course, possible, but extremely unlikely.Bitcoin has experienced its natural ground at approx. 3,000 USD in January 2019. There was no Hype or a lot of advertising for Bitcoin. Quite the contrary, BTC was declared for dead. Nevertheless, the course is marching from that point in the direction of the North. This Level represents a strong support. Not only technical in nature but also psychological in nature.You want to buy Bitcoin and you are looking for maximum security “Made in Germany”?Then, the regulated Digital Exchange, the Stuttgart stock exchange is the right choice for you. In addition to low, transparent fees, free deposits and withdrawals, and EUR & BTC, you can find an intuitive operation. Join today for free and see for yourself! Sign up now!

My conclusion: Bitcoin will find its floor sooner than later

If the $ 3,000 should be sustainable to fall, then rates of 1,000 – 2,000 USD are certainly possible. Much more, it will not fall but, in my opinion. Not only do I personally sit on hot coals and wait for a more favourable entry, but also many others.I’ve heard in the last few weeks, many that would sell for $ 1,000 house and yard, in BTC to enter. Therefore, I doubt that the Bitcoin will reach that mark. In addition, we must not forget that Bitcoin is not a company or a share.It is a completely new Asset represents a class that does not have to hold necessarily to the laws of traditional markets. We have seen in the past, so some of the Surprises that can not be explained rationally.

The current crisis offers a Chance to buy Bitcoin cheap?

The global Situation shifts the rate of success of Bitcoin, just in the future. The Fundamentals are still given by the Central banks-policy and the even greater debasement of FIAT even encouraged.However, the actual impact of Coronavirus on our world economy are not yet foreseeable. None of us has experienced a crisis until now, so we can’t use examples from the past.In the end, every crisis passes at some point. So don’t be swayed by the panic and Coronavirus not contagious. In the panic are often find the best entry points to.

“Be fearful when others are greedy and be greedy when others are fearful”.

This old stock market wisdom from Warren Buffett has also in the current situation its validity. Here the only question is whether we have already arrived at the Peak of the panic, or whether we have another wave is expected, which will push the prices further down turns. We stay tuned for you and are also on YouTube and Telegram for you.Bitcoin savings plan: there’s Always the question after a good Investment is made strategy for BTC. With the help of the Cost Average effect and minimize you to sleep your risk, can better and benefit long term from the long-term development of Bitcoin and co. – it’s that Simple! As a Bitcoin savings plan works.How is it, in your opinion, currently to Bitcoin? Will we really see again, the 1,000 USD or even less?Come on in to our Telegram Chat and talk with the experts and the Community!
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About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.