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The global economy is going through a major crisis right now. Being the most valuable asset, Bitcoin has also its fair share in the global shift. Crypto experts have been presuming that the Bitcoin will have its breakthrough in the coming days.
But it cannot be seen anytime soon. Although the price increased to a historical mark of $12,000 level, it was not a permanent hike. The market cap of the crypto market is $386.4 billion. This is phenomenal in crypto history.
Since the global economy is under pressure, the demand for crypto has increased during the COVID-19 pandemic. People are facing uncertainty around the world but not everyone is willing to invest their hard-earned money in a volatile asset such as Bitcoin.
What About U.S. Dollar?
The U.S. dollar has maintained its position even during the pandemic. As long as the U.S. is considered as a powerful country, the dollar will continue to grow. It is known as the reserve currency throughout the world. Thus, its value will remain constant regardless of what’s happening in the world.
The chances are, the dollar can create a situation of hyperinflation in the future. Because every currency is under risk, major investors like Warren Buffet has started to invest in gold. For major investors gold is a better yet stable option to invest in uncertain times.
Crypto Industry Is Reaching New Heights
Not everyone was assured of the recent success of the crypto market but still, it has flourished even during the pandemic. Some cryptocurrencies have quadrupled in their value while some of them have increased more than 100%.
According to some professionals, crypto is still better than most precious metals like silver as well as oil. The price of oil is decreasing in some countries. Cryptocurrency is also outperforming S&P 500, which is settled at the return of +5.8%. Cryptocurrency, on the other hand, sits at 71.2%.
Future Of Crypto
The crypto market can’t surge overnight. It is too early to say what the future holds for cryptocurrency. Since inflation can occur anytime, and investors will tend to come back to the assets or commodities that are not affected by inflation.
The higher the adoption of crypto, the greater will be the challenges. It is not easy to have a digital wallet or a crypto trading account for most of the people. Crypto market is still in its young phase. Some investors are still unassured of the capability of Bitcoin and other digital assets.