Bitcoin and the Coronavirus- The Changes to Be Expected

Coronavirus currency

On March 5th, Max Keiser made two predictions; first, he said that Bitcoin (BTC) will reach a value of $100,000 and secondly he said that Jamie Dimonwill ‘beg’ the United States Federal Reserve for money in order to by some. The Coronavirus outbreak that started from China has seen the financial markets tumble significantly in different parts of the world. Keiser is a renowned Bitcoin proponent and he spoke on the latest edition of The Keiser Report, his RT news magazine. He stated that the global panic caused by the Coronavirus would have a profound impact on the Bitcoin price this year.

He explained that 2020 was essentially the second part of the global financial crisis that had originally led to the introduction of Bitcoin’s whitepaper in 2009. Speaking to fellow presenter Stacey Herbert, he said that Bitcoin would now experience the second part of the global financial crisis that happened in 2008. He said that Bitcoin was already $10,000 per coin and this Coronavirus crisis would catapult the cryptocurrency’s price to $100,000 and beyond.

Even though Bitcoin had reported losses in accordance with traditional markets, such as gold, it does seem to have made gains in recent times. Keiser also referenced to a dream that Jamie Dimon, CEO of JPMorgan and well-known Bitcoin skeptic, had last month. He said that even he would start preferring Bitcoin over fiat currency. Allegedly, Dimon had dreamt that attendees of the World Economic Forum had been infected by the Coronavirus in Davos. These victims were responsible for ‘spreading’ the disease later on, but Dimon was happy that it had ended up killing the most powerful financial figures in the world.

At that time, he was quoted by CNN as saying that the only good news from it was the death of the elites. Ironically, in 2018, Dimon had denied at Davos that he disliked Bitcoin. Meanwhile, Keiser remain completely unconvinced. He said that Dimon was simply confusing the Bitcoin virus with the Coronavirus, similar to Peter Schiff. Gold bug Schiff also continues to criticize Bitcoin and claims that the cryptocurrency’s price is set to go down due to insufficient gains. Keiser said that the Bitcoin virus was hacking both their minds. He said Jaime would be begging the Fed for money to buy Bitcoin and would become a street urchin, similar to Schiff.

Keiser may not have been wrong, at least about Bitcoin’s price, as cryptocurrency markets have seen a rather massive resurgence. This caused the price of Bitcoin to shoot up more than 20% within 24 hours on March 19th. These gains came after one of the worst crashes in the history of the digital currency. In a series of panicked sell-offs, Bitcoin ended up losing more than half of its value. The crash was similar to the fortunes of the traditional markets during the global economic turmoil that has happened because of the Covid-19 Coronavirus pandemic.

However, Bitcoin began recovering soon enough and it climbed up to $6,000, even though it had been traded for as low as $4,000 a few days earlier. Not only Bitcoin, but also other cryptocurrencies like ether, Bitcoin cash and XRP also experienced significant rise in prices as investors once again began investing their capital into digital assets. According to cryptocurrency experts, the crash of Bitcoin was a knock-on of the collapse of the stock market. Investors had panicked and sold any assets they had to get cash for paying off their immediate debts to their brokers.

The Coronavirus outbreak is the reason of chaos across global stock markets and a number of prominent currencies have fallen to their lowest levels in decades. This kind of economic downturn was seen in 2008 and now central banks are contemplating drastic measures for preventing complete collapse. The European Central Bank and The Reserve Bank of Australia are thinking of emergency monetary policies, which include quantitative easing. Essentially, banks would be printing new money for artificially increasing the money supply. Bitcoin is being regarded as a safe-haven asset because it has a finite supply; no more than 21 million Bitcoins will ever exist in the market. Therefore, it could be a store of value, very much like gold.

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