Five reasons to hold Bitcoin
First and foremost, it should be noted that the coronavirus is not only a financial crisis, as in 2008, but also a health crisis that potentially threatens millions of people. Since Bitcoin needs financially and physically healthy people, the influence of the coronavirus on Bitcoin seems a logical consequence.
A second reason why Bitcoin investors should be reassured is that not only Bitcoin, but the entire financial market is in the red. Investors are not currently questioning Bitcoin as a whole. In a financial crisis, investors sell all their funds in order to flee into cash as liquid asset.
For many, cash is disappearing. The world is very illiquid right now. Bitcoin’s generational performance is a rainy day fund for some. I’m hearing many popular (non-crypto) hedge funds are completely blown out and traders are being told to close down their positions. They need cash.
A fourth reason to be optimistic is that the number of Bitcoin addresses with a balance greater than 1 BTC has currently reached a peak. Thanks to the “black swan” corona, Bitcoin is more affordable than it has been for a long time for normal investors.Even Edward Snowden wrote today on Twitter that today is the first time in a long time that he feels like buying Bitcoin. According to Snowden, too much panic and too little reason are involved in the current crypto crash.
A final, fifth reason to be optimistic is the order book behavior of users today. As Nathaniel Whittemore noted in his daily podcast “The Breakdown”, 72% of today’s orders on Coinbase are buy orders, which shows that the confidence of average investors in Bitcoin is still there.
Author : Jake Simmons