October 25, 2020

The instability of the global economy increases the value of bitcoin

The instability of the global economy increases the value of bitcoin

Despite the depreciation of Bitcoin (BTC) below $ 8,000, this coin is still one of the safest assets. AT with the deteriorating situation in the global economy, the demand for such assets will be strengthened.

Now central banks are pumping up 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.

According to Cameron Winklevoss, at the moment$ 17 trillion 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 global conditions worsenfinancial market attractiveness of such an asset will increase. Strengthening demand for bitcoin may lead to a new rise in the largest digital currency, whose capitalization now stands at $ 143.363 billion.

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