The coronavirus pandemic has brought a major change in the financial market. Due to the market crash, every investor is now searching for an alternative investment option for hedging as well as to invest somewhere that can give them good returns in the future. As the stock market hit hard during the COVID-19, investors are now interested in the crypto assets.
During the pandemic, the correlation between the stock market and the crypto market has become closer. Investors are looking for a safe haven to save their investment for the future. That’s where bitcoin comes into the rescue to serve as a hedge.
No doubt, gold is used for hedging for may years. But the good news is bitcoin can also be used as a hedge during this time. There are many reasons that bitcoin has become one of the best investments and it will serve as the safest investment post-pandemic.
Why Bitcoin is The Safest Financial Investment Post-Pandemic
Well, many people don’t want to invest in bitcoin due to its unpredictability and high volatility. But during this pandemic, bitcoin is serving as a safe haven to hedge against inflation. Even though the value of bitcoin is highly volatile, it is going to stabile and will remain in its range.
If you look at the past performance of bitcoin, it has set a record by giving the highest return ever in the history of investment. In 2017, the value of bitcoin soared up to around 10000 dollars only in a matter of 12 months. If you want to know how investors have gained in 2017 then visit https://bitcoin-southafrican-system.com
But, in the initial stage of the COVID-19, the value of bitcoin sharply declined from $10K to $4K on a single day. However, the value of bitcoin again has come up to its previous level now. But how will it behave after the pandemic is a big question in the minds of investors? So here are some reasons that I feel bitcoin is the safest investment asset post-COVID-19 pandemic world.
- Bitcoin is Digital Gold
Bitcoin was referred to as digital gold for the last few years. But now is the right time when bitcoin is serving as digital gold. The reason behind calling it as digital gold is because it can now serve as a safe haven to hedge against inflation.
Earlier and even today gold is used as a safe haven to fight inflation. Because gold holds the store of value for which it is used as an option for hedging. Now, bitcoin is serving as a safe investment option during this pandemic for hedging.
- Bitcoin Can’t be Devalued
One of the main reasons why bitcoin is the safest investment financial asset is that the value of bitcoin can’t be devalued like other currencies. As the supply of bitcoin is constant so it can’t be altered and the demand can only vary. Further, the demand for bitcoin is increasing because most of the investors are now looking bitcoin as an alternative investment option during this pandemic. The value of the bitcoin can’t be devalued by the government or any financial institution.
- Decentralized
As you know that bitcoin operates through the blockchain technology, no financial institution or the government can’t manipulate the value of bitcoin. As it operates through a decentralized network, you have the sole authority to manage and control the currency.
- Liquidity
Liquidity means you can easily buy and sell bitcoin easily. It doesn’t involve any type of offerings or premiums to trade in because of the high volume. So, you can easily buy and sell the investment asset anytime during the day without any premium or discounts. As bitcoin has enough liquidity, it ensures easy buying and selling of the asset.
Conclusion
All of these factors show that bitcoin is the safest investment option during the pandemic and post-pandemic. Many financial experts and business owners also predict that bitcoin will reach the one-million-dollar mark in the future. So, investing in bitcoin can bring you huge profits in the future. However, the risk associated with bitcoin is also very high, so be very careful before you invest. Take that much risk that you can afford to lose without any problem.
