There are many reasons to buy Bitcoin right now. Uncertainty is rampant during the COVID-19 crisis period. Especially since this crisis is not one based on finances, but rather a complex biological threat to human health and safety (unlike the 2008 economic downturn).
With no clear end in sight, the only financial moves that can be made are ones predicated on heavy speculation. From private citizens, to small businesses, massive corporations, even the government itself, everyone is left to speculate on what’s to come in the financial realm and what should be done about it.
So with that in mind, here are 5 reasons why Bitcoin is a good option in the midst of all the uncertainties in 2020.
Bitcoin Is Not Directly Affected By The Banking Crisis
Banks are the gatekeepers of a country’s financial health. If they are too tight with lending, things grind to a halt, and if they are playing too fast and loose there will eventually be a reckoning a la 2008.
In our current climate banks are forced to deal with late payments from many borrowers. This is because of the financial challenges this crisis has brought up for many. Business loans and mortgages will not be generating the quarterly income banks usually expect, which in turn affects the amount of money banks make.
Therefore some banks may face bankruptcy and freeze their clients funds in an effort to avoid that. That may seem logical to some, but certainly not to the account holders whose money is stolen (albeit legally).
On the other hand, if one were to buy Bitcoin in Canada from a Bitcoin merchant or crypto currency exchange, there’s no need to keep that currency with a third party like a bank. Anyone can keep their entire Bitcoin wealth of any amount with them in a wallet in cold storage, safe from the greedy fingers of banks or governments who reserve the right to seize what they want at their leisure.
Related: Part 2: How Banks make Money (https://netcoins.ca/blog/part-2-how-banks-make-money/)
Bitcoin Has Real Supply And Demand
Of all the speculation going on, perhaps the most impactful is being made by central banks who, ever true to their nature when facing a crisis, resort to waving their money printing magic wand to keep the unsustainable fiat currency model afloat a little longer.
Like most magic tricks, of course, that’s just an illusion; an elaborate illusion, but an illusion nonetheless, because no value has been added. It just pumps more numbers into the hands of banks to lend out.
That’s something a crypto currency exchange in Canada wouldn’t do. Cryptocurrencies retain their actual value based on what the demand is, and not a central supply source that can arbitrarily devalue the currency at will just to prop up its own bloated establishment.
Visit the Crypto Coin Show (https://www.youtube.com/channel/UC1ULGWsmJNqbNbMJ1MdNRjQ) YouTube Channel for more information on Bitcoin and cryptocurrency circulation, or on our LBRY (https://lbry.tv/@CryptoCoinShow:9), the blockchain based video platform.
Bitcoin Offers A Whole New Dimension For Diversification
This is where decision-making and strategy are key. While bold, all-in moves attract attention, it’s usually those who carefully moderate how much they commit to what level of risk who manage their way to success.
For a long time the choices have been cash, commodities (both physical and futures) and securities (stocks and bonds). But those are all part of the same overall market and therefore effected by the same infrastructure. Like how some countries shorted gold on the market for years, while hoarding physical gold at lower prices by the ton to secure their national currencies. Some even speculate that BTC could replace gold altogether (https://cointelegraph.com/news/bitcoin-will-replace-gold-crypto-data-analytics-company-ceo-says).
Related: Is Gold Really Safe In Times of Crises? (https://netcoins.ca/blog/is-gold-safe-in-times-of-crisis/)
Bitcoin bought from a cryptocurrency exchange in Canada (whether it’s Vancouver or Toronto) would have its own truly free market valuation. No crypto exchange or crypto trading operation in Canada is able to artificially manipulate its value. Being diversified into Bitcoin’s free market can help balance out investments in the mainstream markets. When it’s time to cash out, the right Canadian exchange (Here’s a Canada top 10: https://netcoins.ca/blog/10-best-canadian-cryptocurrency-exchanges/) will let you sell Bitcoin easily and quickly.
Bitcoin Is Futureproofing
Things are moving in a new direction. Not long ago the concept of buying Bitcoin was easy to ignore, but now Bitcoin merchants in Canada have offices on entire floors in commercial buildings. With this in mind, it’s not unreasonable to expect Bitcoin to become a standard alternative for certain transactions.
More info: https://cointelegraph.com/news/the-worst-crisis-in-a-century-is-setting-the-stage-for-bitcoin
With more and more people researching ‘how to buy a bitcoin in Canada’ on their browsers, that’s almost a given. According to Google itself interest in ‘buy and sell Bitcoin’ searches rose nearly 100% this past March. On the other side of the planet, China’s Baidu search engine reported a 183% increase in Bitcoin searches in late May.
Bitcoin Offers Mobility and Control
If another crisis, like say a second wave of COVID-19, were to hit your area hard, can you safely move your assets to somewhere else if needed? In our current system, money in a bank that has 0% reserve is a liability and potentially not there when you need it. Alternatively cryptocurrencies come without the hassle of physical cash or the control of others. If you wish you can hold some or all of your own crypto in a cold storage wallet offline.
Conclusion
As always, there’s no silver bullet solution in these unprecedented times, but the concept of Bitcoin as part of a diversification strategy is a great option to include. The attraction to Bitcoin being included as a part of a diverse investment portfolio continues to increase thanks to more market activity, mobility and upward momentum.
*This is not investment advice, I am not a financial advisor. This information is for educational, informational and entertainment purposes only. We are strictly giving our opinion and discussion of the content in this article. Always do your own Research (DYOR) and understand the risks of any investments made.