In the current scenario in which we find ourselves, the world is submerged in an uncertainty in every sense and for bitcoiners to think what will happen to the price of Bitcoin when the quarantine ends? It is not far-fetched.
The Coronavirus has turned the world upside down, supply chains, production and the economy in general have been affected beyond expectations.
For that reason, at CriptoTendencia we share this article with the intention of providing possible scenarios for the price of Bitcoin by the time the quarantine ends.
The economic crisis due to quarantine according to the IMF
In a recent IMF report, he shared his quarterly global economic outlook for 2020.
As expected, the projection appears very bleak due to the economic effects of the global quarantine measures. Something that they have already called “Great Lockdown”.
In the report, the IMF estimates that markets will continue to stall even long after the pandemic ends.
That is why there is concern that the price of Bitcoin will continue its “apparent correlation” with the S&P 500 and fall along with traditional assets.
For their part, many consider that the damage to the markets and the mega impression of the FED, will set the ideal stage to put Bitcoin its true acid test.
What could be his greatest opportunity and demonstrate what he was created for. With this we should not expect the price of Bitcoin to go to the moon in 24 hours.
Rather, understand that normal people (the majority) will have to learn the harm of fiat money painfully.
Post pandemic banking
It is clear to many that the world and banking after the Coronavirus quarantine will be different from before the pandemic.
Of course with it, including the price of Bitcoin and cryptocurrencies.
The need to change the way people carry out daily activities is more than evident.
The use of modern technologies have broken paradigms in commercial activities, education, jobs and even banking.
This new way of doing things is what will allow us to reach the “new normal” that awaits us.
The trend towards digitization, however clear it may seem, has been widely promoted by the Coronavirus in many ways. It is unclear how sustainable current changes will be.
Of course, we are not fortune tellers to know what the world will look like after the Coronavirus. However, we have learned that changes can happen suddenly. Affecting traditional banking, such as cryptocurrencies with the price of Bitcoin.
Changes accelerate by leaps and bounds
In this way, these are the most probable elements of the future at the moment for banking institutions:
- Being digital is no longer just optional.
- Working remotely will increase.
- Bank branches will no longer be so vital
- Innovation is a must.
- FinTech will be a priority on the agendas.
- There will be more competition at the digital level.
The price of post quarantine Bitcoin
As a consequence of the Coronavirus, several banks have closed branches. Even in some countries, limits have been introduced for cash withdrawals.
In this way, some clients cannot withdraw more funds than the expected amount. Even assuming it is “their own money,” they cannot freely dispose.
Bitcoin, on the other hand, is available at any time and there are no withdrawal limits. The cryptocurrency can be obtained and transferred regardless of location, also in rural areas, at any time and even on weekends or holidays.
In that sense, BTC can operate normally despite the blockages by the Coronavirus quarantine. Highlighting that the price of Bitcoin is another differentiating element with traditional banking, being something that fluctuates free.
Despite all the stress on the financial system, Bitcoin processes transactions on a regular basis and reliably produces a block every 10 minutes.
Everything seems to be pushing towards digitization in a short time. Consequently, the need for window hours and physical bank money will be reduced.
And in the digital arena, we will be waging war on Fiat money on the Bitcoin grounds. It will certainly be a good way to measure strength and make a clearer comparison for ordinary people.
The current crisis is an opportunity for crypto and blockchain assets, due to its impact and presence in the digital world.
Cryptocurrencies are digital in nature, therefore they have no “physical” limitations. They also don’t need ATMs for cash withdrawals or physical storage locations like metals.
In times where government monetary policies are unpredictable, Bitcoin provides a real alternative in this environment.
We will have to learn to adapt and continue.
In this way, with this possible challenging scenario for institutions and individuals. Bitcoin price is likely to benefit once quarantine is over.