The Global pandemic has set in, there has been a lot of debate about the effects of COVID-19 on the bitcoins, whether it would be able to cope up with the loss or will suffer even more. The risk factor of the COVID 19 is not yet very clear among the users after the pandemic.
It has been seen that the fiat currency or the traditional currency has undergone a lot of downfalls and the value of the currency has dropped so much so that no one can now trust the money nor the gold. The last hope remains to be the bitcoins in the economy, which has not been legal as of now in many countries, but some still have hope. The economic stress during the pandemic has actually helped to identify how much would the bitcoin remain shield in the economy.
While some of the https://cfds-trader.com has already proved that the bitcoin will be able to bear through while many others are still in the process of finding out what would probably help them. In the past two months, it has been seen that bitcoins are doing really fine compared to the other assets. Especially when gold is considered to be a safe haven, while it has been showing the most amount of risk by not giving back much of interest.
Know the Liquidity Boost
There is a process in the economy which is called the liquidity boost which means that when the economy falls and there is less currency in the economy than the economy actually needs. Then there is the need to make some boost in the economy which only be done using the liquid gold.
Why Bitcoin is not Gold?
People in many countries all over the world consider, that cryptocurrencies are very safe, but it would be very indefinite to say so. Cryptocurrencies are not as safe as we consider it to be, there are some legit risks that come down with the cryptocurrencies. Many people in many other countries also consider gold to be safe haven, at least till before the pandemic but that illusion has been broken softly, by the COVID-19. They have come out of the illusion that gold could be able to save them from everything that they face.
The recent natural disaster has already proved that nothing remains the same, as in both the gold and bitcoin has shown results which were unexpected. Bitcoin and the nature of the cryptocurrency are such that it does not give as much collateral damage as that of the gold or anything like currency.
Bitcoin has been very strong in this matter, even when the gold in the economy touched its bases the bitcoin did not let fall down completely. It is the base that took up the economy even during these hard times.
Bitcoin is often referred to as digital gold because it contains all the values of gold and is not so risky. Unlike physical gold, bitcoin has no physical existence, hence it does not need any shape and size. The bitcoin can simply be bought and kept in your digital wallet which is also known as a software wallet or a hardware wallet.
Hence bitcoin has always been considered more powerful than gold, but the danger lies in the technology. You must be sure that whatever technology you use, they must be safe to use and never by any mistake share the password or any id with anyone to keep it safe intact. Another danger is there also someone trading bitcoin when you are sleeping which means such people steal bitcoins, in such cases, it stands as a danger.