Bitcoin might not be the most stable asset out there, but it is more stable than some economies. Recent Forbes report claimed Bitcoin is gaining much attention amid the coronavirus pandemic and painstaking efforts of governments to contain it in boosting the slowing down economies worldwide.
Many governments are taking bolder initiatives to control the spread to prop up the global economy.
Based on the Tokenist report, a financial information platform, about 20 million Americans are presently unemployed so many of them are taking a closer look at the potential of bitcoin, as cited in the researchers’ initial positive findings.
Many Americans have become more interested in bitcoin with increasing confidence in how this digital currency could help them. This covers all surveyed ages and gender groups. The impact was most apparent among millennial respondents where 45% of those part of the survey prefers to invest in bitcoin instead of gold, stocks, and real estate.
High Unemployment, More Bitcoin Investors
As COVID-19 severely hit the U.S. population, the unemployment rate jumped to about 15% in April, the highest ever recorded. The report cited the pandemic affected millennials and micro, small and medium enterprises as the hardest blow ever experienced in recent times. In February 2020, the unemployment rate was about 3.5%.
The findings showed how market fluctuations brought by COVID-19 has influenced people’s desire to invest in bitcoin, highlighting 47% of individual investors trust bitcoin as compared to big banking institutions. This recorded an increase of 29 percentage points for the past three years.
Millennials Have High Trust Rating for Bitcoin
Meanwhile, 43% of respondents with 59% of millennials believed that many people will be using bitcoin in the next decade. About 44% of them noted that they are more likely to purchase bitcoin in the next five years.
The researchers claimed bitcoin will have a bright future and significantly provide solutions to the current market crisis.
With declining confidence in conventional investment tools, bitcoin is poised to provide investors a better option and long-term, stable store of value.
Increased Bitcoin Acceptance
The research strengthened previous related reports from the bitcoin and cryptocurrency community that COVID-19 and its ramifications have increased interest in bitcoin.
According to Alex Leishman, an executive of River Financial, a San Francisco-based startup bitcoin brokerage and financial services firm, there were soaring transactions made in early 2020, as inspired by the Federal Reserve’s monetary intervention. The company said their client base has doubled each month ever since.
Streamlining Bitcoin with More Prominent Investors
Bitcoin is gaining momentum with more seasoned macro investors joining the bandwagon of cryptocurrency. Some of them are Dan Tapiero, Paul Tudor Jones, and Raoul Pal. As this occurs, this legitimizes bitcoin as a mainstream finance investment instrument.
For Olaf Carlson-Wee, founder of Polychain Capital, a hedge fund firm, the financial evolution is operating at a faster pace amid the current global pandemic, highlighting the loopholes within conventional financial systems that can potentially be addressed by bitcoin.
Even regardless of the trade volume, crypto has remained popular as a concept during the COVID-19 outbreak, according to data provided by the analytics and finance management startup The Tie.