When In Doubt, Buy Bitcoin
Many new investors may have been scared off by the plunging market, wondering whether this thing can actually be a hedge against the rest of the crazy market. But those who did buy that day, if they bought the bottom (almost as low as $4,100 that day), they’ve nearly doubled their investment by now. Of course, it’s difficult to get up and running on an exchange, along with bank account and such, in a day.
It would seem we can therefore thank coronavirus for one thing: there are new Bitcoiners, spurred into action as a result of changing external events.
Said events may be unique, but they demonstrate one thing: in times of distress, people quickly lose faith in fiat currency.
To be fair, the same might be said of Bitcoin, but there’s a lot that goes into that. To make the statement about fiat, we look to the evidence that on March 13th, searches greatly spiked for “buy Bitcoin.” Look at the chart below.
Bitcoin’s Levers of Power
To make a similar statement about Bitcoin is more difficult. You can’t rely strictly on the price. People aren’t losing interest in Bitcoin just because the price goes down, no matter how much it is. They also aren’t necessarily losing faith. Unlike the dollar, which trades in a more complex environment but still has seen its value debased against other fiat currencies and certainly against cryptocurrency, Bitcoin is traded as an asset, more like a stock than a currency.
Thus in many cases the same people that dumped the stock market are dumping Bitcoin, not retail investors and certainly not new users.
It’s like a majority of Bitcoin users are subject to the whims of a few who may not even…..
Read the Full story here on FullyCrypto.com