Could COVID-19 Begin a Digital Cash Revolution?
As governments around the world continue to print money in an effort to combat the economic damage caused by Coronavirus, more and more people are seeing the value that cryptocurrency could bring.
So, what do successful venture capitalists, CEO’s of leading corporations and expert economists all have in common? Well, they all feel that the next 2 years will be an extremely interesting and exciting time for Bitcoin.
Tim Draper still holds fast on his previous prediction that BTC will gain a value of a quarter of million dollars per coin by the start of 2023.
He believes that the current pandemic has truly highlighted the dangers of centralised fiat currencies, and once the crisis has passed, many more people will have flocked toward Bitcoin. With continued developments to improve scalability, we could now be standing at the dawn of mass adoption, where economic evolution replaces cash with crypto.
Brendan Blumer, CEO of hugely successful company, Block.one and founder of top-ranking EOS coin, has stated that currencies inherently resistant to inflation will begin to get the spotlight as nations print more and more money to combat COVID-19.
“The global macro environment has never before aligned the stars to highlight the value proposition of crypto quite like what we’re about to see in the next 24 months. Hold on to your seats”
Blumer opined that many investors that had moved to cash were now becoming concerned that they may be stuck with it. This view was corroborated by the CEO of Galaxy Digital, Mike Novogratz, who replied to Blumer, saying that he had already begun to identify a growing interest in the cryptocurrency market.
It’s not an impossibility but I think you underestimate how many people have moved into cash and are now scared they’re going to get stuck with it. Right now it’s not about what investment is the most attractive, it’s about what is the least unattractive.
— Brendan Blumer (@BrendanBlumer) April 7, 2020
Elon Musk, the CEO of Tesla and SpaceX, had already stated at the beginning of the year that Bitcoin would replace cash in an interview on the Third Row Tesla podcast.
There is also a very tangible reason to choose to transact digitally. As we now know, the COVID-19 strain can live on paper surfaces for several hours, so paying for our goods using cash is now potentially dangerous; we could be spreading the invisible killer, unknowingly.
If Bitcoin becomes a little easier to move around, if it becomes more scalable, people will be presented with a very simple choice: To use credit and debit cards and incur the heavy fees that they carry, or select a borderless, frictionless, transparent alternative.
So, which way do you think it will go?
BTC broke through its resistance barrier of $7,200 in the early hours of Monday morning, and many now believe that the bulls are controlling the market. If this is the case, BTC should face little problem until the next barrier at $8,000.