Cryptocurrency investors and observers agree that the COVID-19 crisis converted many doubters into becoming believers of bitcoin as a safe investment.
Bitcoin Showed Resilience During the Financial Market Frenzy
Despite being affected by the massive stock market sell-offs at the start of the COVID-19 lockdown in March 2020, bitcoin was able to recover in a matter of weeks. The effect of the March sell-off resulted to the price of bitcoin descending to $3,600. A number of miners stopped mining operations to prevent the cryptocurrency from degrading any further.
Bitcoin proved the most resilient in all digital investment assets, because in a few weeks time, many started turning their attention to bitcoin as a “safer haven” than gold and other precious metals. Gold and other mined investment assets fell short of proving its strength during the pandemic. Mainly because deals were unable to push through when mining operations had been hobbled by coronavirus lockdowns and travel bans.
Unlike Bitcoin that went into three (3) stages of halving during the ongoing pandemic, which as part of the cryptocurrency system, aim to reduce the supply of bitcoins floating in the market. Although halving reduced the block rewards of bitcoin miners, the approach ensures that the supply of bitcoin will not overflow in the cryptocurrency market. After all, increased supply if not met with a relative increase in demand, will only downgrade the value of bitcoin as an investment asset.
When compared to gold, supply is not the question; but the ability of mining companies to back them up with deals that can make gold truly valuable in the commodities market,
Bitcoin skeptics soon saw the logic of the system by which bitcoins operate, the digital coin had shown impressive recovery without the need to rely on external conditions as precursors for its re-emergence as a safe investment. To date, Bitcoin has made an impressive return with a 35% year-to-date yield.
Impressive Bitcoin Performance Does Not Denote Get-Rich Quick Schemes
Those new to cryptocurrency investments, should not rush into too-good-to-be-true bitcoin deals and speculations. Have awareness that scammers are on the sidelines, waiting for opportunities to lure not-so-savvy investors, and those looking to make huge profits in a jiffy.
Remember, bitcoins were originally conceptualized as a faster and less costly financial system. The main idea is to provide a platform in which peer-to-peer fund transfers and payments of goods and services can be transacted without having to use the traditional banking system. Investing in bitcoins and other cryptocurrencies is only secondary, albeit eventually becoming an obsession to many cryptocurrency owners.
Nonetheless, those venturing into cryptocurrency trading must do so by making a careful selection of the trading platform to use when buying and selling speculatively. One such platform that comes highly recommended is the IQ Options online trading platform. Still, readers don’t have to just take our words of recommendation, but should make their own assessment.
The IQ Option website at https://ipoption.com contains comprehensive information not only about their trading platform and what they offer as options for investment assets trading.
As a licensed broker, IQ Option also furnishes tools and guides that can help speculators and seasoned traders analyze different conditions. The platform generates charts and markers that will enable them to track and analyze asset prices before they decide to venture into full real-money trading.