In these moments, the world is going through a crisis toughest it has ever faced. We refer to the Coronavirus, the disease emerged in Wuhan, which has already caused thousands of deaths. This is without counting the financial damage that is generating all over the world, and that has come to impact even at the price of Bitcoin. Bringing to the crypto community to question its position as a safe haven of value.
What is the Bitcoin a refuge of value?
The Bitcoin has evolved endlessly since those early days of 2009. When, after being created by Satoshi Nakamoto, a small community of enthusiast of cryptography, he was collaborating in forums and chats of the Internet, to create the ecosystem around the first criptomoneda of the world. Since then, Bitcoin has gone from being a curiosity for fans of the technology Blockchain, to become a currency accepted by hundreds of businesses around the world. Being able to use the criptomoneda to acquire goods and services, to trade, or even play at multiple casinos Bitcoin existing as on this site. Thanks to the security and trust provided by this virtual currency, as a safe payment method for their users. However, with the passage of time, the narrative around Bitcoin has been changing. Going to be only an alternative decentralized to the fiat money traditional, to become the mind of the crypto users in an active refuge of value. That is, an asset whose price does not have a direct correlation with international financial markets. So, in times of uncertainty, when the markets plummet, the price of these assets should be maintained or even increase. A pattern that the crypto community began to observe in the Bitcoin, which gained notoriety as the “digital gold” of the XXI century.
This narrative of Bitcoin as an asset [store of value, has been on the rise during the past few years. Leading to important figures in the crypto community as Anthony Pompliano, began to consider the Bitcoin more as a refuge of value than as a currency. Passing this function to be in the background. A situation that is beginning to change due to the influence of the Coronavirus. Therefore, although, in principle, the majority of the community believed that the unfortunate illness, would be positive for the price of Bitcoin. The last few weeks appear to have broken with these hopes. Therefore, at the time that the Covid-19 came to the western world, causing the collapse of stock exchanges around the world, the BTC collapsed next to them. The collapse in the price of Bitcoin was profound and immediate. Source: CoinDesk as Well, and after having lived a major bullish rally during the first two months of the year, the Bitcoin lost all the ground gained in January and February, with a fall of 49% on your quote in less than 24 hours. A disaster in the crypto market that triggered the debate. Therefore, although with the passage of days, the price of Bitcoin has been recovering its quotation prior to the fall of the 12 of march. What is certain is that this crash should never have happened. Therefore, the logic of the assets book value is that, when an event occurs that threatens to affect the world economy such as the Coronavirus, the capital will seek refuge in these assets, increasing demand and therefore its price. Just what I predicted the crypto-analysts in the days prior to the fall. None of this happened. On the contrary, while gold suffered an initial shock, to almost immediately regain their normal behaviour as a refuge of value. The Bitcoin has experienced in the last few weeks a high volatility in its price, due to the uncertainty generated by the Coronavirus. Contrary to the strength expected by the crypto community.
All of these movements in the price of Bitcoin we pose an important question. What will happen with the criptomoneda once you go through the crisis of the Coronavirus? And is that, in the last few weeks, increasingly, analysts of the crypto world have been withdrawing their support to the thesis of the Bitcoin as a safe haven of value. However, this might not be all bad for Bitcoin. Because, during the past few years, the criptomoneda has been increasingly seen as a financial product purely speculative. Abandoning their initial goals to become the replacement of fiat money worldwide. Therefore, the debate generated around Bitcoin, from the crisis of the Coronavirus, could be a time of rearrangement within the crypto community. Which allows the same, redirect your efforts toward the betterment of the platform, and the expansion of its adoption by more and more users. And not so much to its quality as a refuge of value.