Pandemic: good for the bitcoin market or bad?

[Stormstout]

Good day,
forgive a newbie question please. I am new on the bitcoin scene and I am also pretty fresh in economics. I am learning, I suppose that is what I wanted to say. I was an ignorant for a way to long and now I trying to gain knowledge to be a little wiser. I got a bit lost because of the pandemic and I wonder is it good to invest in bitcoin and stock market nowadays or should I wait and see what is the market response going to be. I was pretty sure I got a hang of it but the situation changes so dynamically that it is hard for me to follow.

[Cnut237]

In theory the pandemic is good for bitcoin. In practice it's probably bad.

The economic effects of the pandemic highlight the deficiencies and inadequacies of fiat. Particularly the 'print more money to get yourself out of trouble' response. So in theory this makes a decentralised asset with a maximum supply an enticing proposition.

However... whilst bitcoin's long-term future may be as a safe-haven asset and a store-of-value, for the moment it is still widely seen as a highly speculative asset... a 'good times' option, something to throw some money at in the hope of astronomical returns. This also means that it's the first thing to sell when there are signs of economic trouble. So given that we haven't really yet seen the full effect of the economic woes from Covid, we should be aware that there is a chance that crypto prices may fall significantly. Or they may not... they've been quite resilient so far. All we can do is make our informed best guesses, no-one knows for sure what will happen.

[Upgrade00]

The pandemic has lasted for a number of months now and has already greatly influenced the financial markets, so in a way we have seen how the market reacts to economic changes based on reactions of investors. The situation can change overtime due to newer events and factors, such as cancellation of new stimulus checks, loss of jobs, increase in fiat inflation, etc, and all these gets prices in by investors and traders leading to a regular change in the charts. The market rarely remains static overtime and investors always have to anticipate changes.

To answer your topic title, Pandemic: good for the bitcoin market or bad?
I would say, it is a little bit of both. The pandemic has led to the shrinking of economies globally and lowering the money in circulation meaning people have less money for investments. It has however also shown how Bitcoin is resistant to inflation and could serve as a sort of hedge especially in nations where their legal tender has taken a huge but due to economic crisi, hence driving them to Bitcoin.

I wonder is it good to invest in bitcoin and stock market nowadays

The stock market comprises a lot of firms and companies which I do not follow closely, but I assume you should analyse them individually rather than a a a broad market as they react differently to changes, similar to how you identified Bitcoin out of the entire crypto market.

[traderethereum]

We can not say it is good or bad for the bitcoin market, but we have already seen that the bitcoin market gets the pandemic's effect.
But that is not taking too long for the bitcoin market to rise again.
And now the price stays at the $11k range.
People tend to search for a new job to have money, but unfortunately, the position of those new jobs will not be too many, and only some people who have skills that will be accepted.

But for bitcoin, I think that makes people know another new payment method to pay since, in many countries, social distancing has already been used.
By using bitcoin, I think people can minimize using paper fiat, which is reluctant to have a virus or something that we are not seen.
Besides using digital money from their countries, maybe people can start to use crypto to buy something in local merchants, and they don't need to touch anything to pay except using their mobile phone.

[Mauser]

Good day,
forgive a newbie question please. I am new on the bitcoin scene and I am also pretty fresh in economics. I am learning, I suppose that is what I wanted to say. I was an ignorant for a way to long and now I trying to gain knowledge to be a little wiser. I got a bit lost because of the pandemic and I wonder is it good to invest in bitcoin and stock market nowadays or should I wait and see what is the market response going to be. I was pretty sure I got a hang of it but the situation changes so dynamically that it is hard for me to follow.

So far the bitcoin and Alt coin community made it pretty well through the corona pandemic. The bitcoin price has stayed almost the entire time above $10,000. We see that market evolved a lot over the last 5 years. Investors have more confidence in cryptos these days. But I still think the pandemic is bad for cryptos, because people have less money to spend and unemployment is rising all around the world. Without the pandemic this year the bitcoin price would likely be much higher.

[blockman]

The market will always respond no matter what the world is facing. It's already an established market and even any acts of God will come to the world, bitcoin market will stay as long as there's demand and the market cap is stable. What's important in your part, know your status during this pandemic if you're okay to let money out of your pocket going to flow and converting it into a bitcoin asset or holding. If you understand the risk and you're fine with the amount you will be investing, no problem and buy. Otherwise, continue learning more of it and mitigate risk.

[Haunebu]

Based on current trends, the pandemic has been pretty favorable for the cryptocurrency market overall since most people favored digital payment systems over physical FIAT due to the pandemic which helped cryptocurrencies prices grow in the short term.

This helped many people realize how useful cryptocurrencies truly are in any situation. However, you should only invest what you are willing to lose op.

The cryptocurrency market is very volatile except for certain currencies like stablecoins etc. Don't expect a stable experience when investing into this market.

[fiulpro]

Pandemic is never good for anything, not for bitcoins, not for economy , not for anything else but when you see in the bigger picture , pandemic have made people to choose another option, option other than banks and big companies. Now what they are doing is : Switching to bitcoins , to try and get jobs which are well paid for in bitcoins, to explore their options etc.. I have seen people asking me things like: "Hey, are you still into that bitcoins thing ?" So I send them the link to the forum and I believe they can explore, give it some time, see how they can run their businesses internationally, online , thorough cryptocurrencies.

But bitcoins have performed extremely well during the pandemic, it actually didn't go into a recession and therefore it's also attracting people from stock markets now.

[cryptoperkele]

Good day,
forgive a newbie question please. I am new on the bitcoin scene and I am also pretty fresh in economics. I am learning, I suppose that is what I wanted to say. I was an ignorant for a way to long and now I trying to gain knowledge to be a little wiser. I got a bit lost because of the pandemic and I wonder is it good to invest in bitcoin and stock market nowadays or should I wait and see what is the market response going to be. I was pretty sure I got a hang of it but the situation changes so dynamically that it is hard for me to follow.

If bitcoin gets treated as gold in some day, it would be good for it. Right now marketcap is too small for not to be highly volatile and it takes hits with the stock market. I think that this benefits only assets like Gold right now. Otherwise it's bad for the whole economy.

[erikoy]

<snip>

I think why those people engaging in stock market had been doing in bitcoin due to the fact that bitcoin has promising impact in trading due to its market price volatility.

However, it still risky because of again the volatility. I think they could manage to get along with bitcoin volatility because stock market trading is same as cryptocurrency trading. As observe I agree that cryptocurrency during the pandemic has gone good.

[dkbit98]

If you look at the chart when pandemic started you will see that Bitcoin is going up if we are looking at BTC dollar value, but same thing happened also in stock market and with gold more or less.
More money is printed that caused all this markets to pump, so it was good for Bitcoin, and it will have even bigger effect in near future because more dollars have been printed than ever in history.

[MiningBattalion]

In theory the pandemic is good for bitcoin. In practice it's probably bad.

The economic effects of the pandemic highlight the deficiencies and inadequacies of fiat. Particularly the 'print more money to get yourself out of trouble' response. So in theory this makes a decentralised asset with a maximum supply an enticing proposition.

However... whilst bitcoin's long-term future may be as a safe-haven asset and a store-of-value, for the moment it is still widely seen as a highly speculative asset... a 'good times' option, something to throw some money at in the hope of astronomical returns. This also means that it's the first thing to sell when there are signs of economic trouble. So given that we haven't really yet seen the full effect of the economic woes from Covid, we should be aware that there is a chance that crypto prices may fall significantly. Or they may not... they've been quite resilient so far. All we can do is make our informed best guesses, no-one knows for sure what will happen.

At the beginning,it's seems pandemic is good for bitcoin.Actually it worked too,many hidden money was get into cryptocurrency.This is the cause of rise in Ethereum price also.But when workers loss their job and hard to get money for their daily expenses.Most of the holding bitcoin was sold at very low price and lead to the fall of price again.

[btc_angela]

Good day,
forgive a newbie question please. I am new on the bitcoin scene and I am also pretty fresh in economics. I am learning, I suppose that is what I wanted to say. I was an ignorant for a way to long and now I trying to gain knowledge to be a little wiser. I got a bit lost because of the pandemic and I wonder is it good to invest in bitcoin and stock market nowadays or should I wait and see what is the market response going to be. I was pretty sure I got a hang of it but the situation changes so dynamically that it is hard for me to follow.

I guess you need to ask your self about risk in investing on bitcoin. It's a very volatile asset and as much has we wanted to anticipated where the price is going, we really can't. So ask yourself if you can take that risk, and then how are you going to look at it, are in for the short or long term? So far since the pandemic bitcoin has bounce back so I would say that it did bring the worst and best of the situation. If you are not ready, then it would be better if you steady the market and think about how much you are willing to invest.

[Febo]

Good day,
forgive a newbie question please. I am new on the bitcoin scene and I am also pretty fresh in economics. I am learning, I suppose that is what I wanted to say. I was an ignorant for a way to long and now I trying to gain knowledge to be a little wiser. I got a bit lost because of the pandemic and I wonder is it good to invest in bitcoin and stock market nowadays or should I wait and see what is the market response going to be. I was pretty sure I got a hang of it but the situation changes so dynamically that it is hard for me to follow.

The initial hit that pandemic did was in March. Prices of everything drooped back then. Gold, Tesla shares, Bitcoin, ...  Now I dont think something like that can happen again. Bad things like delays with vaccine can just prevent Bitcoin to go up.  If you are buying on long term, there is totally zero question. 10 years from now Bitcoin price will be way higher as it is now. Yes in the mean time can go down. Even a lot down. But why would you care.

[Gibreil]

In my personal point of view, this pandemic has an effect in the current market of bitcoin and other trading such as stocks or forex. It affects the market by means of devaluating the fiat or gold. We all know that the price of bitcoin is still affected by the price of dollars or gold. Another is that, it seems like the crypto trader goes slow down in investing or buying crypto market coins due to the threat of pandemic. They will probably serve their money as savings than to use it to buy cryptocurrency right now.

[Shohanur]

Actually it is depending on market. As pandemic is affecting on market, investors are not available in all sector. But in this pandemic situation, more people are joining with bitcoin.

[hahay]

As long as you have money to invest and are prepared to take the risk, then I think investing anywhere will be good for you personally. That way, whether there is a pandemic or not, investing in bitcoin I think is a good idea because even the world is hit by a crisis but in fact, the price of bitcoin is able to be more stable and even continues to rise recently. If you want to invest for the long term then now is a good time, but if you just want to make quick profits because of this pandemic, I think it would be better to buy in other cryptos that are more volatile. It all depends on yourself, how much you are prepared for the risk because when it comes to the bitcoin market I can't guarantee that you will easily make a profit if you don't have patience.

[wheelz1200]

Good day,
forgive a newbie question please. I am new on the bitcoin scene and I am also pretty fresh in economics. I am learning, I suppose that is what I wanted to say. I was an ignorant for a way to long and now I trying to gain knowledge to be a little wiser. I got a bit lost because of the pandemic and I wonder is it good to invest in bitcoin and stock market nowadays or should I wait and see what is the market response going to be. I was pretty sure I got a hang of it but the situation changes so dynamically that it is hard for me to follow.

I dont think it will have a crazy effect on the crypto market but in general I would think it would affect all markets poorly.  Less jobs open, less money people are making.  Tighter hluseholds limit "extra" money for investments and the like.  I think there is always a snowball affect when dealing with these life situations.  But hey who knows maybe it will end up being good with people wanting more personal control over their money now 

[Stedsm]

Bad for those who filled their bags already with expensive stocks assuming that they will be super rich this year, but the tables turned badly for them. Good for those who were waiting for an opportunity and this pandemic landed that sank even the best performers down to levels that made several investors bankrupt.
Bad for the pre-pandemic Economies, Good for the post-pandemic investors.

[masterzino]

In theory, it's good for all the cryptos. Prices most probably will rise more.

Still, I prefer not to gain in this way. Cryptos are strong enough as a concept to 'win' over time and without suffering human beings.