2020 was a challenging year for all of humanity: the COVID-19 pandemic had become a great shock and influenced every single industry. Besides the tension in the business sphere and in medicine, the industry of finances has also been affected. Cryptocurrency is not the exception: even though this type of asset is regarded as a financial investment that is the least dependent on any outside factors, the global panic has led to the huge fall of Bitcoin in March 2020.
However, after the fall, the exchange rate of the digital asset was stable in it rising throughout the whole year. The new reality of pandemics proved that cryptocurrency is the best choice for investments. Thus, both the financial experts and investors from all over the world rushed to join the cryptocurrency trade - if they hadn’t made this decision yet. If you are one of the crypto enthusiasts, you will definitely be interested in bitcoin casino Canada - as this is a great way to expand your assets by just playing games: effortless and profitable with NativeCasinos Canada!
So how the cryptocurrency industry attracted investments in 2020? Stay tuned to learn all the information worth knowing.
According to Bloomberg, as of December 2020, Bitcoin surged more than 270% since March, which basically proves BTC’s reliability as an investment one more time. This type of asset shows the least dependence on the outside factors - even when it comes to global pandemics. Digital money might have falls; however, they usually rise afterward - this was demonstrated by BTC this year.
As the current events create some panics, people lose their trust in traditional methods of investments as they cannot prove their stability anymore. Thus, new-age investments, such as crypto coins, become more and more valuable. During the lockdown, fiat currencies and a list of other assets have lost their values noticeably: on the other hand, cryptocurrency has gained new investors. Finally, it is no longer regarded as temporary and uneven innovation as it has been earlier: financial experts have long been skeptical towards digital gold.
2020 showed that Bitcoin and other cryptocurrencies are effective in fighting inflation - and this resulted in a bunch of valuable investments which only strengthened BTC’s positions on the global market.
Prior to the last year, it was considered risky to invest in crypto - and this is why institutional investors chose other methods. Throughout the years, the trust towards digital money has been slowly rising. Finally, in 2020, Paul Tudor Jones, the famous investor, claimed that he would invest 1% of his portfolio in Bitcoin. This has been a start for numerous institutions to purchase crypto as well. For example, Microstrategy invested around $425 million to add digital gold to its balance sheets.
In their 2020 statistics, Grayscale, the largest digital currency asset manager all around the world, showed that 87% of money inflow in Bitcoin in 2020 was coming from various institutions all around the world - this is the achievement. In this way, more and more people and institutions become less skeptical when it comes to the new-age assets.
The experts say that there is even a greater opportunity for Bitcoin in 2021 as it is expected that not only institutions will invest in BTC, but the nation states as well.
To sum up, even though the coronavirus panic has slightly shifted Bitcoin’s stable rising as it dropped by 50% in March, the rest of 2020 had been flourishing for the whole industry of the cryptocurrencies. While the other types of financial assets turned out not to be effective in case of the unstable economy and the overall challenging times, digital gold has been earning the hearts of not only investors but institutions as well. in 2020, numerous institutions purchased Bitcoin - and this trend has only been a start.