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Increasing instability in the global economy increases the value of Bitcoin

Published

4 years ago

October 20, 2019

Despite the depreciation of Bitcoin (BTC) below $ 8,000, this coin is still one of the safest assets. Given the worsening situation in the global economy, the demand for such assets will strengthen.

Now central banks are pumping the financial systems of their states with capital and introducing negative rates in order to force investors not to store money, but to invest it in production.

Recently, the US Federal Reserve and the People's Bank of China poured additional funds into the financial sector of their countries.

$ 17 trillion dollars are currently held in negative interest bonds. 17 trillion reasons why you should own bitcoin.
– Cameron Winklevoss (@winklevoss) October 17, 2019

According to Cameron Winklevoss, currently $ 17 trillion is invested in bonds with negative yield. The decrease in income from investments in the stock market leads to an increase in investment in bitcoin.

A similar point of view is held by the Weiss rating agency. His analysts believe that the purchase of BTC will be the response of investors to the growing global crisis.

Bitcoin is actually becoming modern gold. It is more often used for storing capital, and not for transferring funds.

As the global financial market worsens, the attractiveness of such an asset will increase. Strengthening demand for bitcoin could lead to a new rise in the largest digital currency , whose capitalization now stands at $ 143.363 billion.

#Bitcoin was an overreaction to the financial crisis and the monetary system that allowed it to occur. Today, instead of functioning as an efficient peer-to-peer system for transferring cash, $ BTC is evolving into a store of value like gold. #BTC #crypto #cryptocurrency
– Weiss Crypto Ratings (@WeissCrypto) October 17, 2019