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At the height of the Coronavirus pandemic, Tom Emmer, the US Congressman made an interesting observation. He stated that the pandemic is the perfect opportunity for Bitcoin to grow stronger and become more mainstream in American society.
This is not an isolated incident signaling the growth of Bitcoin in the USA. Just last month, regulatory authorities in the USA instructed banks to provide custody to people looking to store Bitcoins in banks.
While all these are encouraging signs, what needs to be pointed out is the fact that the COVID-19 pandemic has accelerated the process. In this article, we are going to look at five reasons why the pandemic led to a boom in Bitcoin investing in the USA.
5 Reasons why the Pandemic in the USA led to a boom in Bitcoin Investing
1. Loss of Jobs and Rising Unemployment-
Data shows that the US is one of the worst countries to be affected by Coronavirus pandemic. With businesses shutting down, the USA is facing one of its worst economic depressions in the last one hundred years.
Many people who are losing their jobs are turning to invest in Bitcoins as a favorable income opportunity. The sky-high growth margins are making many people invest their savings into Bitcoin and other cryptocurrencies in the USA.
2. The Work From Home (WFH) New Normal-
A majority of the workforce lucky enough to be still employed in the USA is following the WFH normal. This means that many people have the perfect opportunity to explore a new income-generating source while sitting at home.
Many professionals who are following the WHH routine have some extra time on their hands. This has made research; education and information about Bitcoins shoot up in searches. These people are investing small amounts in the hope of having some savings.
3. The News of Rising Inflation-
In order to curb the ill effects of the pandemic on the economy, the US Government and the Fed Reserve is printing money. They are also buying bonds and trying to bring some normalcy to the economy. However, experts predict that all these measures are going to lead to inflation.
The American citizens are looking towards Bitcoin as an effective hedge to counter the inflation, once it sets in. Bitcoin, in this sense, is being looked at more as a store of value, than as a currency for people looking to use it as a hedge against the rising inflation in the economy.
4. The Rise of Credible Bitcoin Trading Platforms-
The spread of Bitcoin among the masses has been attributed to the mushrooming of trading platforms. These platforms have made it easy for the ‘average joes’ and ‘noobs’ to start trading and investing in the crypto from the get-go.
Many of the better trading platforms use advanced software to help traders make the right decisions towards a particular trade. Some of the best trading platforms also assign a 24x7 financial advisor to help people in case they have queries. You can click here for bitcoineras on the best Bitcoin trading platforms.
5. The Profit Margins-
Ask any investor about what they like the most about investing and they will say- Profits! If the last five to six months have shown us anything, it is that Bitcoin is the fastest growing financial investment in the world.
Many retail investors have seen the astronomical rise of Bitcoin and have been encouraged to start investing in the crypto. Americans by nature are entrepreneurial and can identify a good opportunity is they see one. The high profits from Bitcoin have definitely attracted like a magnet to pull more people into the ecosystem.
The Final Word
With the US government and other authorities opening up on Bitcoin, the crypto is set for a glorious growth period towards the latter half of the year. Many are of the opinion that Bitcoin might touch the $40K mark by December 2020.
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