Bitcoin Is About To Shock The World

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Bitcoin Is About To Shock The World

 Right now, people are scarred. They have every right to be. COVID-19 has spread globally, markets are battered, and the ever-increasing fear of a drawn-out recession is emerging. At present, we are being lead to believe that a quick recovery is just around the corner but this is highly doubtful. Although the “shortest bear market” has supposedly ended, I think it has only just begun. As long as COVID-19 is disrupting supply chains, workers are quarantined, and people are fearful, we can expect the markets to suffer. Furthermore, even once the crisis is resolved, we’re likely to see the looming effects of the crisis for months to follow because the virus itself has exposed the fragility of the financial system. As many have suggested, the FED’s cure for the virus risks being worse than the virus itself.

Where Does Bitcoin Stand? 

Many have suggested Bitcoin is correlated with legacy markets and fear that the expected Bitcoin bull market will quickly transform into another 2018-like bear market, perhaps even worse. Some have already called a potential fall back to one thousand, a price we haven’t seen since early 2017. I completely disagree with this analysis. People are caught up in the moment and do not fully understand the dynamics at play here. Not only will Bitcoin recover at a pace far quicker than legacy markets but it will truly shock the world. 

They Must Have Forgot

Bitcoin went from the high end of three thousand to fourteen thousand in a short amount of time. Following this, there was a long consolidation phase in preparation for an even greater move upward. In essence, all the weak hands have already been shaken out throughout 2018 and 2019, on top of the recent consolidation phase. The dramatic 50% drop that followed was caused by numerous things but should be perceived as an aberration from the overarching trend. With that said, I think the possibly of lower lows is out of the question and it astonishes me to see as much amateur analysis suggesting otherwise. 

Bitcoin Is About To Shock The World

We are about to witness a once in a life time paradigm shift. Because Bitcoin and cryptocurrencies in general have survived the COVID-19 crisis, people will certainly view them with less suspicion and more confidence, as they are truly established as an uncorrelated market. Furthermore, because the U.S., China, and other nations are on the verge of or attempting to create their own blockchain-based currency, people will begin to understand that blockchain technology really is the future of money. However, there is a very simple and practical explanation for the coming surge we are about to witness. Since the worst is behind us, many investors are going to seek out the most profitable post-market collapse investment avenues available. Of them, cryptocurrencies undoubtedly stand the most to gain.

A Shift From The Stock Market

Something I believe we can expect is a significant shift of stock market investors into the blockchain space, especially among the millennial generation who have likely just become disillusioned with the legacy financial system after suffering their first significant losses. Like the 2008 global financial crisis, we can expect the coming disillusionment to have long-lasting and tangible effects, which contributed to the very creation of Bitcoin itself.

We are likely to see a pivot from the legacy system into the blockchain ecosystem or “stock market 2.0.” I fully expect announcements in the near future from major companies and institutions about the issuance of their own digital assets that are correlated directly or indirectly with stock price and-or the company itself. Of course, we’ve already been witnessing this process to some extent but I expect that process to accelerate. What would have taken nearly a decade is about to happen over a number of years. Of course, from a marketing standpoint, the blockchain space will be hyped as a 24/7 trading avenue that is not controlled by governments or capable of being bailed out. Ultimately, people will come to understand the beneficial aspects of the technology and adoption will rapidly increase.