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.

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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.

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