It’s no secret that bitcoin adoption has only continued on an upward trajectory. But now, even big business is looking to get in during the market dip.
By now, we’ve all at least heard of bitcoin. While you may not know exactly how this digital currency works, it’s unlikely that the term is fully novel to you- or anyone you know for that matter. Since around 2017, bitcoin has become front and center among mainstream focused traders.
Despite the spike in use and continued adoption, however, the coin still has yet to break into the portfolios of big traders. With most of us still trying to keep up, and learn the ropes. Luckily, there are a number of exchanges designed for some much-needed hand holding of newbies to the market. Platforms like Bitvavo not only allow trades in bitcoin and a number of other crypto assets, but they also help the novice trader navigate the somewhat muddy waters.
With the effects of the novel Coronavirus in full swing, dabbling in traditional markets has become more uncertain than it has been in decades. With the last equatable fluctuations to the economy not seen since the early twentieth century. Bitcoin and other cryptos have seen their share of bear markets to be sure, but the coins that are known for wild volatility actually seem to be performing better than some of the most reliable securities known to date. Assets like gold and oil have been swinging heavily, leaving traditional traders uncertain about how markets could behave in the future.
Why Big Business Wants Bitcoin Now
However, any seasoned bitcoin trader will readily tell you that inherent market volatility is just another day in bitcoin. Prices often surge and plummet, making for good business for savvy speculators, specifically when dealing with bitcoin. However, these types of market trends are fairly unusual, and ominous, occurrence for traditional traders.
Rarely do most stocks and bonds fluctuate in this manner, making it a difficult market to navigate for traditional traders. Outside of needing some experience with volatile markets, big business and seasoned traders are looking toward bitcoin for a few other reasons as well.
Not since early 2017 was it easy to secure a decent share of bitcoin. Prices for a single bitcoin have hovered anywhere between $8,000 and $12,000 since that time, making it fairly cost-prohibitive if you’re looking at buying in big. But thanks to the Coronavirus pandemic, bitcoin saw massive losses in the early days of the disease. Because of this loss, traders have seen an opening in the markets that they have been waiting for years for. Which was closely followed by a stable correction.
While the market value of bitcoin is still a bit below its average 2019 value of around $8,000, prices did indeed rebound following the sharp drop that every market felt shortly after the pandemic took hold. While the coin has steadily recovered, perhaps what’s even more encouraging is that its value has been shown to be more stable than many more traditional asset shares. Making the basement built-in well worth it for many big firms.
The other way in which COVID-19 is influencing the portfolios of many staunch traditional traders is what is yet to come. The technology behind many cryptocurrencies- referred to as “blockchain technology” is coming into its own. While conventional economy drivers begin to falter as consumerism drops with widespread lockdown and social distancing measures, bitcoin and other cryptocurrencies offer some very unique and necessary solutions to what very well could be the future of our economy.
From decentralized applications and smart contracts, to the internet of things and better regulation of supply chains, or better ways to send funds globally- crypto has a solution for many of the questions we are now faced with. Seemingly overnight, the way that people bought, sold, and traded items and values has changed. The items we use, the companies we rely on for deliveries, the entire system of a goods economy has been flipped on its head. Brick and mortar have become taboo, and decentralization is something that’s not only convenient- but wildly necessary. Removing superfluous human interaction not only protects us from infection but has shed renewed light on the fact that many of the fees that are incurred through these interactions are completely unnecessary.
An Economy on Edge
So while we, as the public, lie in wait of what will come next, businesses are learning to adjust and adapt to our new found needs. Needs which can’t be met through traditional means, and needs that require novel approaches. As more and more traditional traders begin buying into cryptocurrencies, markets will stabilize and widespread adoption is sure to occur, as technology propels us into the future.
Bringing cryptocurrencies and bitcoin onto the frontlines of both home and big business traders alike. These technologies offer more than just a way to make money or store value. But instead, offer us a glimpse into a future where self-sufficiency is no longer only attainable to the few, but finally in the hands of the many. That many being cryptocurrency networks.
Arnold Webb received a Masters Degree in Computer Science from Harvard University. Arnold currently is a full-time researcher and trader in the cryptocurrency industry. Arnold contributes content to CryptoCelebrities.co, The Bitcoin Magazine and several other publications.