A growing number of companies and organizations are determined to integrate the cryptocurrency into their services. Bitcoin is prominent because its creation emerged as a solution to the damage that the printing of money was causing.
The COVID-19 pandemic continues to cause deaths worldwide while people take shelter in their homes trying to stop the chaos. Suddenly, a new “normality” is taking over the world, where Bitcoin is increasingly relevant.
People observe the utopian reality of the outside world from their homes. News reports cause shock and concern in the population. What once enjoyed stability is now collapsing.
Big companies have gone bankrupt, unemployment rates are skyrocketing and citizens are protesting on the streets. Large economies are reeling and governments are trying to contain the crisis by issuing inorganic money.
Amid so much chaos, the news on the pioneering cryptocurrency is truly positive. Beyond the scams and money laundering that constantly insist on tainting the ecosystem, Bitcoin is opening doors that had remained closed in the past.
Recent announcements demonstrate that more companies and organizations are determined to integrate Bitcoin into their services. PayPal, Visa, and US banks are preparing to join the driver of the adoption of Satoshi Nakamoto’s invention.
Bitcoin as a Safe Haven
Experts and analysts have already predicted the current situation that the economy is facing. Satoshi Nakamoto created Bitcoin as a solution to the damage that money printing was causing when the UK was seeking to respond to the 2008 crisis.
What makes this cryptocurrency unique is that it is the first scarce digital asset that no centralized agency or entity can control. Due to its decentralized nature, no entity can issue or dilute its value over time.
The creation of Bitcoin emerged to be finite (it will only be possible to mine 21 million units). Therefore, without the possibility of issuing surplus coins, the threat of hyperinflation is reduced to zero.
Mathematics can help determine how Bitcoin has appreciated over the years. Users can view its profitability calculations on the 99bitcoins website. There, the analyses indicate that the pioneering cryptocurrency has been profitable for 4,054 days of its entire existence (4,221 days).
Based on the above calculations, Bitcoin’s profitability is above 96%. An example allows users to better observe the behavior of the cryptocurrency during all these years.
In that sense, if a person invested USD 10 in Bitcoin on January 1st, 2011, he or she would now have in their possession a profit of USD 331,272,807. The same is not true with the US dollar, which has been losing value for 107 years.
In addition to acting as a safe-haven asset, Bitcoin allows users to maintain custody of their funds. All they need is a 12-36 word phrase to access their wallet. As long as they do not share their private phrase or key, no one will be able to confiscate their funds.
As there is no third-party participation, no one can freeze, tax, or claim their coins. No one can steal them and the government cannot confiscate them under any circumstances.
It is becoming increasingly clear that Bitcoin is gaining prominence in one of the most difficult situations that humanity has faced.
By Alexander Salazar