Holding Bitcoin in 2020? First, congratulations. Second, you have 5 super reasons to celebrate. With the chaos going on globally as a result of Coronavirus disease (COVID-19) and traditional fiat markets taking a beating, it’s exciting time for cryptocurrency and bitcoin holders (hodlers).
Below are reasons why holding Bitcoin currently is like winning the lottery, discovering a gold or oil mine in the back of your yard.
Holding bitcoin currently? 5 reasons to be happy
#1. No cryptocurrency / bitcoin market bailout
The crypto market is not waiting on any governments, institutions or businesses to bail it out. Therefore, bitcoin hodlers don’t have to worry about devaluation or inflation.
— ₿it₿it (@BitBitCrypto) March 19, 2020
The United States’ government is in the process of injecting an extra $1 trillion into the global market. As a result, it’s guaranteed global currencies will lose value.
Trillions of stimulus…
$1.5T in Repo
$1.1T Commercial paper relief
$1T in US fiscal stimulus
$750B QE from ECB
$600B QE from the Fed
$600B bank loan guarantee (France/UK)
$500B in loans (Germany)
$300B in Japanese stimulus (proposed)
$100B in fiscal stimulus across Europe
— THE LONG VIEW ⚫️ (@HayekAndKeynes) March 19, 2020
On the other hand, Bitcoin value will overtime appreciates because total supply is cap at 21 million, permanently.
Financial Times (FT) wrote on Wednesday:
“Andrew Bailey, the new Bank of England governor, said on Wednesday that the UK central bank was willing to pump unlimited quantities of money into the economy via its new commercial paper facility to help fight the effects of the coronavirus — and would go further if requested to by the government.”
#2. Bitcoin reward halving is coming
The crypto community has been bullish on Bitcoin since the end of 2019 because of the May 2020 Bitcoin halving. Just a month ago, BTC was trading at $10,000 before the entire crypto market crashed to around $3,600.
However, BTC’s price and the majority of the crypto market has since gained back some of the loses. However, we expect Bitcoin to recover to its early March high or more at least a month before halving gets here.
Thomas Lee, head of research and managing partner at at blockchain & crypto research firm, Fundstrat said Bitcoin should be beat Dow Jones and end 2020 at $40,000.
Max Keiser, the founder of KeiserReport sees BTC surging as high as $400K, though he did not say by when. Bitcoin gained 9,336.36% first halving and 288.60% the second one.
#3. No banks, institutions or government can seize or freeze your Bitcoin
At the start of Coronavirus (COVID-19) anxiety, an associate of mine rushed to Bank of America to withdraw a large amount of US dollars (USD). To his surprise, he was told that was not possible at that time.
Nevertheless, that’s one thing those holding bitcoin don’t have to worry about. At anytime you can (should) transfer your Bitcoin from crypto exchanges to secure storage such as a Nano Ledger or a Trazor hard wallet.
All banks have since reduced the amount an account holder can withdraw. No one can limit your BTC transaction or purchase power; you’re 100% in control of your fund.
Bank of America is limiting cash withdrawals to $3,000. Expect that number to drop over the next few days.
— Tatiana Koffman ⚡️ (@tatianakoffman) March 16, 2020
#4. 0.28 BTC ownership makes you a 1%er
Be aware that Bitcoin is a long-term investment. This new virus will soon open people eyes. Consequently, they will start looking elsewhere to safeguard their money as traditional fiat currencies begin to collapse or the perception that they will.
No traditional converting and storing methods, outside of gold and silver exit currently. Bitcoin is and will continue to be the preferred and safest method for the migration.
Owning only only 0.28 Bitcoin makes a member of the 1% exclusive club. Bitcoin max supply is 21 million. Imagine the value of BTC every single person, or even 10% of the world’s population wants to own bitcoin like fiat currencies.
#5. Bitcoin separated itself from the stock market
Coronavirus is not discriminating. Every market is experiencing massive sell-offs. Not even Bitcoin and the crypto market is spared. On the first day of the US outbreak, BTC was dumped 54%.
However, Bitcoin quickly recovered more than 20%. The stock market, gold, silver, oil, Forex, on the other hand, will take years to gain back a fraction of what have lost.
Are you holding bitcoin right now? Share your thoughts on the comment section below.
Faith Obafemim tech lawyer, digital content consultant, blockchain & crypto researcher, emerging tech tech writer. She is currently doing research on the implementation of the African Continental Free Trade Agreement (AfCFTA) on the blockchain and recommending Kleros as a dispute resolution layer.