Topic: Bitcoin during pandemics - page 4. (Read 1044 times)

This is also another reason. Not the virus, but the hysterical reaction to it.
The shutdown could include the internet and even electricity, and bitcoin is highly dependent on these two resources. So people panic and sell.

The flu kills much more people each year and dont have this reaction by governments. This is why I dont believe the narrative the media is delivering. There is something else going on.

Hi Twentyonepaylots, It seems that one of the main reasons Bitcoin, and other cryptos are being affected by Covid-19 much more than they were by MERS, etc,  is because of the widespread, systematic shut downs going on all around the world. Entire industries have been forced to close by governments (both capatlist and socialist, democratic and oppressive). This has never happened before on such a large scale, and for so long. Here in the US, and especially here in California, everything will remain closed for probably 12 more weeks. This is causing total panic among people to cash out and just save their money. Unfortunately crypto is not immune to this.

First, the World Bank pandemic fund, which was to expire in june this year, got called out by the WHO, when this organization declared a pandemic. This is a half-billion dollar fund from 2017: https://qz.com/1017805/the-world-bank-issued-425-million-in-pandemic-bonds-and-derivatives-designed-so-investors-pay-in-the-event-of-an-outbreak/

This created a snowball effect in the markets, as big investors had to pay for the fund, thus taking money from other funds, which caused a crash in the legacy (ie, fiat) markets. Bitcoin is being used by hedge funds since 2017, so they shorted it to cover the snowball effect.

Second, derivatives speculation. Without Bitmex, the price would have fallen to 5k and we would be at 9k now. With Bitmex, the price didnt go to zero because of a hardware failure in their servers. Derivatives use leverage to bet into bitcoin prices, like in a casino. Bitcoin is liquidated to pay those who bet into a crash, so the price dropped to 3k. I warned about derivatives several times since 2017, but people ignored it. Bitmex is not alone on it, there is also CME and Binance futures as well, but Bitmex answer for most of it.

These were the two determinant factors here. They prove bitcoin is pegged to the legacy system, and is no more a store of value, like it was believed earlier. If the system crashes, bitcoin will go with it, being used as hedge to mitigate losses for big investors. Add to this the derivatives casinos and you have a recipe for disaster.

Things like the pandemic fund will not happen again, but the derivatives casinos will keep the price down, causing a permanent bear market. It happened with gold and silver.

Many businesses, jobs, transactions that are being affected by the current global crisis. Hence, many of us are affected in so many ways like, income, stocks and different exchanges. The pandemic has caused many physical businesses to close and so their employees are forced to leave work without security in terms of finances. I think in terms using bitcoins to purchase items online will help in lessening the physical contact, hence, lessening the possibility of passing the disease on to another person.

That is happening cause people are starting to panic buying means, lot of people now are pulling out their investment and spend it for their own safety as you can see, crytocurrency is not alone, stock market is literally crashing right now and a lot of other markets too are suffering. This is a world crisis and many country will suffer from economic lost because of this. If this pandemic is going to stay for a long period of time lot of people are going to suffer not just with virus but in poverty too.

The pandemic and many types of paranoid around it that occur almost everywhere around the world are very perfect environment for a proof of bitcoin strength in serious crises. Bitcoin was born, back in 2009, in a global financial crises and now in 2020, we have been in another worse global crisis, that will create another bigger financial crisis in months later.

In Bitcoin, I believe that it will take that pandemic as an advantage for faster acceptance, globally.

As we can see in the graph the pandemic corona virus has a large impact in the market price, because this virus is easily transfer from human to human by just coughing and touching the infected objects. The coronavirus also effects all the currencies because many people are just stable in their houses so that the price of every currency are going down. I hope that this crisis will end soon and everything will get back to normal.

yeah when people have a spare cash they will not end up selling too but i believe mostly have it because people are always known to be prepared when in times of there is an upcoming crisis , this is why i also believe that panic sellers isnt the cause of the dip and not the virus either but for me i think its pure manipulation as i know that manipulation already takes place before and they only timed it or they only initiate it when there are popular events .

There is no relationship between the two I believe but the virus made an impact with the global market and the crypto market as well.

It isn't the virus that is the main reason why the markets went down but it has been the catalyst of it. Because of the virus, it created a massive paranoia and that forces the weak hands to sell their assets that they're holding and crypto is one of them. On the other side, if you have a spare cash at the time of the crash and you are a pro then I believe that you bought some cryptos and some stocks at a cheaper price already.

The immediate recession and steep drop in oil prices represent strong deflationary pressures, so the eventual inflationary effects won't be felt for quite a while. In the longer term, I'd say yes, it increases Bitcoin's appeal a great deal. The pandemic crisis and immediate economic concerns will take center stage for now, though.

obviously the corona epedemic must have an impact on the world economy and it is certain that it will also affect bitcoin even though it is not directly and may not be large. but many bitcoin holders and investors are also bothered by the corona epedemic because many also want to participate so that this epedemic soon passes with the help they provide. hope that this epedemic soon passes and crypto runs uninterruptedly with the corona epedemic.

I'm thinking about an extreme case, where the pandemics keep going on for a year or two, and there are almost no one here have USD, all go broke, all they have is cryptocurrency, is it possible to start to use cryptocurrency to make some economy activities without caring about fiat money anymore?

It seems that no matter how much fiat money they print, it still don't reach the people that most need them

We know that probably the reason for the decline here is the panic among Bitcoin users. They relate Bitcoin's stability with the decline of fiat currency that's why they are on panic selling. If we take a look at it, if most Bitcoin users would still behave and critically analyze the situation, we would see an average graph at most rather than a declining slope. That's the only relationship established between the two.

Does the unlimited money printing of Fed will potential increase appeal of bitcoin? Fed & Gov are printing trillions of dollar now. Debt to GDP ratio increased by 10% overnight from that stimulus deal!

It does not make a lot of sense for the miners to dump their coins now and make the price to go down when they want the opposite and the current price of bitcoin is so close to their mining costs, however I agree with the rest, right now people are afraid and they prefer to be in cash in the case they need to buy something they really need, and while bitcoin is a great investment at the current price many are thinking ahead and preparing themselves in the case things get even worse.

You can't blame the pandemic about the fall of bitcoin .
Because when a holder die because of the pandemic. It has a big chance that bitcoin will be stable or pump because  there will be a  huge affect on the circulation of bitcoin.

Although when the pandemic occurs make bitcoin price drop to the lowest price level, right now, bitcoin price can increase. But unfortunately, the bitcoin price does not raise and hit more than $7,000, but it stays at $6,000. Perhaps, we will see $7,000 soon, but we never know when it will happen. But yes, this pandemic gives impact to all things we know and not just stock, but cryptocurrency also get the effect, but fortunately, crypto can survive in this pandemic. What we are waiting for now is everything can be healthy again so that crypto will be increased too, and we hope that after it ends, we will see the bull run for the cryptocurrency.

Covid-19 pandemic contributed to the loss in Cryptocurrency market and bitcoin is showing a great resistance to it. Since major market of the world are collapsing it's affecting investors other source of income which make them to sell part of crypto asset to  survive the impact of the pandemic. I don't think this will have a lasting effect on the bitcoin market as compared to crude oil and stock market.

- This assumption does not seem too reasonable because if people need some money for shopping during a pandemic, the income from the job, the money they have accumulated, the support from the government, too many sources can solve this urgent problem. Bitcoin can receive influence only very low when it is the last place that people think of when there are no other options, the drop in a pandemic is just a temporary panic, when people become calm and seek extra income at home, bitcoin will be able to raise prices from that search

This COVID-19 pandemic issue is the basic reason for the recent crash on the world leading stable coins; Bitcoin to be specific.  Further fall of the coin Is being predicted, since most of affected countries are on lock down may will definitely result to the fall of stock  and defiantly have a detrimental effect of the crypto market