Post
Topic
Board Economics
Re: Pandemic: good for the bitcoin market or bad?
by
shata
on 24/10/2020, 14:49:04 UTC
Good day,
forgive a newbie question please. I am new on the bitcoin scene and I am also pretty fresh in economics. I am learning, I suppose that is what I wanted to say. I was an ignorant for a way to long and now I trying to gain knowledge to be a little wiser. I got a bit lost because of the pandemic and I wonder is it good to invest in bitcoin and stock market nowadays or should I wait and see what is the market response going to be. I was pretty sure I got a hang of it but the situation changes so dynamically that it is hard for me to follow.

If you noticed, Bitcoin price dropped hard together with majority of the financial markets: stocks, forex, commodities, etc. The reason? You know it. Because of the pandemic COVID-19. But in fact, all of them especially Bitcoin drastically recovered months after that and still continues to do its job until now. Why?

Overall reason is because of pandemic and like a domino, slowly has chain reaction to everything related to it.

You named it, Dollars (DXY, Dollar Index). In this time, Government of USA keeps on printing money which is really bad for the country because the value of their currency will decrease and just to give them to people as part of their stimulus program. In this case has a direct effect to especially on Bitcoin and Commodities like Gold as they act as safe haven for people who do not want to hold dollars since they know its decreasing in value.