A novel idea has engulfed a significant stake of active investors in the U.S. The citizens have been using inflationary currency into deflationary currency. By deflationary currency, it is meant by cryptocurrencies here. Cryptocurrencies have seen a stark rate in purchases even though prices fell as the pandemic hit the global economies. A constant 50% rise for the Bitcoin has been witnessed despite the hardships that economies are facing.
Bitcoins since 2016 have been an uproar in the States. Many investors have been keen on venturing into this blockchain-enabled technology. The initial attractions were those of discreet identity and the absence of a third-party patron. Bitcoin gradually rose to an all-time high. In a turn of events, the Cryptocurrency Act was implemented, too, as the coveted dollar faced a threat. U.S.’s ticket to global power is the monopoly of printing the dollar bills. But with the presence of bitcoin, this confidence started to shake.
Much to the surprise of government authorities, the stimulus funds under the CARES Act of $1,200 were invested in bitcoin and altcoins. The funds which were allotted to protect and preserve from the fury of the coronavirus pandemic were parked with the dollar’s pitted rival. Bitcoin enthusiasts claimed that they saw the market conditions as perfect for investing in deflationary currencies. Since bitcoin already has garnered a certain amount of trust in terms of security of data, and ease of transaction became the most sought-after cryptocurrency to invest in.
The investment on the bitcoins is being looked at as a sign of protest to the current state of the financial system as well. Debt-based spending on crypto-assets can lead to fiat currency devaluation. In such a stage, it is of concern for administrators and government officials. But citizens are taking full advantage of the “halving” bitcoins underwent last year as well. As per some investors, currently, even one single bitcoin can be worth a million dollars. Citizens aren’t taking away from the opportunity. Despite some blows syndicated by the treasury, they seem to remain unaffected to the bitcoins thanks to the “halving” as well as the goodwill. The future looks bright for decentralized digital currencies as people are starting to wonder and explore possibilities of a universal global digital method. Many bitcoin investors have their hopes high of a big revolution in the financial system. The onset of which is already being felt.