Bitcoin will become a safe haven once again
Bitcoin has always been a safe haven for investors. This means it is a great place to store extra cash to let it grow. The downside is when a crisis emerges the safe-haven money gets pulled having a devastating effect on the price of Bitcoin. In March, bitcoin went from $7200 to $3800, and since then we have seen some positive gains. As the market crisis worsens we will see bitcoin and other cryptocurrencies turn into a safe haven once again. Buying bitcoin could be a smart long term investment as we will see (along with other markets) prices continue to rise after the COVID-19 scares end. Bitcoin is used to buy or sell items from people and companies that accept bitcoin as payment, but it differs in several key ways from traditional currencies. Why the need for bitcoin in the first place, if there are already so many traditional means of making payments? A key element of bitcoin is its decentralized status, meaning that it is not controlled or regulated by any central authority. This immediately distinguishes it from fiat currencies. Bitcoin payments are processed through a private network of computers linked through a shared ledger. Each transaction is simultaneously recorded in a “blockchain” on each computer that updates and informs all accounts. Bitcoin has much potential to become more valuable than it already shows. Furthermore, most cryptos are backed by bitcoin’s price making them reliant on the digital giant, further making bitcoin the best play in the crypto game.