Re: Coronavirus is very harmful to fiat currencies, not bitcoin
Have you seen how governments responded to the corona virus?
Quite simply, in Italy, the US and elsewhere, they will increase their budget deficit, and add debt. In my understanding, that's very bad for fiat currencies, while BTC will remain unaffected, thanks to the lockdown on money supply.
Quite simply, in Italy, the US and elsewhere, they will increase their budget deficit, and add debt. In my understanding, that's very bad for fiat currencies, while BTC will remain unaffected, thanks to the lockdown on money supply.
That is true because if the Corona Virus has a significant effect on Bitcoin, it would be noticeable on its value but nothing has change even the virus has spread. Bitcoin's value is only affected on the supply and demand on circulation and also the number of users taking interest on it might also affect its value. Fiat currencies would be affected because its used mostly in daily lives and it would also shut down some businesses that only transacts using fiat.
Have a look at the Bitcoin chart from March to April.
The price of Bitcoin experienced a decline when the first global lockdown started around the world.
When a recession occurs, people will not think about saving wealth, but how the wealth is spent to survive. This phenomenon has proven to have a major effect on the economy including bitcoin, even though it will not kill bitcoin itself.
Exactly!
Like any other product used a store of value for humans. When those humans feel unsecure, they will spend every option to stay alive and this is how price dropped. And this has nothing to the nature of bitcoin itself.
We are in the second wave with covid, which is more harmful, but that people start adapting with a pandemic reality, the price chart is back to normal.