Crypto

Bitcoin’s Value is Likely to Decrease Further as Demand Dwindles due to the Coronavirus

There are many different opinions on whether Bitcoin should be considered a safe-haven asset or not. Cobra, the co-founder of Bitcoin.org, certainly doesn’t seem to be thinking along those lines.

Most Bitcoin enthusiasts are quite familiar with the name Cobra.

Bitcoin Isn’t a Safe-haven Asset, Cobra Claims

For better or worse, this individual often shares personal thoughts and opinions on all aspects of Bitcoin.

Recently, he explained why the world’s leading cryptocurrency shouldn’t be considered to be a safe-haven asset during the coronavirus.

It is a sentiment that many others share.

Bitcoin is anything but a stable asset, and certainly remains linked to traditional market momentum.

Cobra is convinced that cryptocurrencies are not a hedge against traditional finance.

Related Post

Nor will Bitcoin and other assets negate losses from a recession or stock market collapse.

In that regard, the coronavirus may have very negative effects on Bitcoin moving forward.

It is an asset that, according to Cobra, is primarily purchased when users have an excess of cash.

During the coronavirus crisis, that will be anything but the case.

As such, demand is likely to decrease, potentially driving prices down even further.

How the Bitcoin halving will factor into all of this, remains to be determined.

Even so, the coming months will undoubtedly get very interesting. 

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Share
Published by
JP Buntinx

Recent Posts

NEAR Goes Live on Solana as Cross-Chain Trading and AI Ambitions Accelerate

$NEAR is now live on Solana. And the implications go far beyond a simple token…

2 days ago

Hyperliquid Proposes 37M HYPE Burn as Validators Prepare to Vote

Hyperliquid is facing one of its most consequential governance moments yet. A proposal now before…

2 days ago

Tether Introduces PearPass, a Local-First Password Manager With No Servers

Tether has entered a new category. The company announced the launch of PearPass, a peer-to-peer…

2 days ago

Solana Takes First Steps Toward Quantum-Resistant Security

The Solana ecosystem is beginning to prepare for a future many in crypto still treat…

3 days ago

Institutional Bitcoin Accumulation Enters a New Phase

Bitcoin accumulation is no longer subtle. It’s visible. It’s deliberate. And it’s accelerating. In the…

3 days ago

Ripple Expands RLUSD to Layer 2 Networks, Laying the Groundwork for Institutional DeFi

Ripple is pushing its stablecoin strategy beyond a single chain. The company has announced it…

3 days ago