Impact of Covid-19 on Bitcoin position in the world
The Covid-19 pandemic has accelerated the adaptation of bitcoins in the world. Such a conclusion wаs made by the specialists of the Singapore holding company DBS Group Holdings. The analysts presented their point of view on the issue in further research.
before covid-19 pandemic and after
As part of the work, specialists considered two temporary phases of bitcoin: before the pandemic and after. According to their observations, in the period before Covid-19, cryptovolta was more often used for speculative purposes. After the pandemic, according to DBS, market participants began to pay more attention to the limit. BTC and the ability to use it for saving purposes.
It is noteworthy that interest in a new financial asset accompanies the growth of digital payments in the world. The leader of the direction was Asia.
policy of quantitative easing
Against the background of the U.S. regulators’ choice of the policy of quantitative easing. Researchers noted, people questioned the expediency of keeping savings in U.S. dollars. Market participants also started to study the possibilities of investing in gold and other savings assets, which, among other things, include bitcoin.
“Since central banks around the world have chosen quantitative easing policies to combat the economic consequences associated with the Covid-19 pandemic, interest in crypto currencies, along with gold, has revived,”
the DBS study says.
Proponents of DBS conclusions
Earlier Forbes analysts also concluded that the pandemic has a positive impact on bitcoin. American congressman Tom Emmer told about the benefits of Covid-19 for BTC.
Representatives of other financial organizations, including the team of Singapore’s Sygnum digital asset bank, support the DBS theory. Specialists of the company drew attention to the fact that the pandemic has fueled the interest of different groups of investors in opportunities to invest in the crypt currency.
“Now that banks are back on track, we’ve seen a significant increase in requests from local and international financial institutions for assistance in setting up B2B services that their clients could use to start investing in digital assets,”
said Martin Burger, one of the Signum Bank’s Client Services managers.
Reasons to use digital assets
At the same time, the DBS research showed that bitcoin investments (short-term and long-term) take only 3 and 4 places among the reasons why users choose digital assets. According to the survey results, people use the cryptographic currency for payments and settlements on online orders. The second place, among the reasons to work with BTC, was the general interest in the technical solutions that are involved in the new financial instrument.
