This week, Bitcoin took the throne as the best-performing asset of 2020, beating out oil, major stock indices, and even gold. Since January 1, Bitcoin has gained roughly 22 percent, despite a significant sell-off in March at the height of the Coronavirus pandemic.
On Thursday, BTC surged to a high of $9,337 on Voyager, but corrected to $8,744 by the time of writing. With this week's run, Bitcoin recouped all of its March losses, unlike the S&P 500, which is down 10.6% YTD and the Dow Jones Industrial Average 15.7%.
DigiByte (DGB) +31.5%
OmiseGO (OMG) +20.9%
Cardano (ADA) +20%
Ethereum Classic +17%
Bitcoin, which was born out of the 2008 financial crisis, is performing exactly how investors hoped it would during times of intense market volatility. By design, Bitcoin is anti-inflationary and independent, two characteristics that give it a definitive edge during economic downturns like we're currently experiencing.
Bitcoin's Whitepaper outlines in detail how the cryptocurrency works from a technological perspective, but most people don't care to learn about nodes, hashes, and Merkle branches. And who could blame them? What matters most is how technology affects people's lives. Even the most digitally-savvy people don't need to know how the internet works to reap its benefits.
For this reason, we put together the Seven Pillars of Bitcoin, a digestible and easy-to-understand guide to how Bitcoin can directly improve people's day-to-day lives and why it is more important than ever.
- Independent: Bitcoin is independent of government and bank control because transactions require no intermediaries.
- Transparent: All transactions take place on a public blockchain ledger.
- Anti-Inflationary: With countries around the world printing trillions of dollars, the risk of hyperinflation is looming. Bitcoin has a fixed supply, making it deflationary by design.
- People-Powered: Bitcoin is the largest distributed computing network in the world! Thousands of people and miners power its blockchain 24/7.
- Secure: Transactions are final and cannot be returned. Also, you have the power to safely protect and store your assets.
- Efficient: Send thousands or millions of dollars digitally around the world in minutes without ever having to touch a dirty-dollar.
- Primed for Mass Adoption: Institutions are turning hundreds of millions of dollars into Bitcoin, and new retail customers are swarming to Voyager to buy Bitcoin.
In our current economic climate, these pillars are more important than ever. Also, Bitcoin is just weeks away from completing its third Halving, an event that reduces the rewards for miners, further driving down inflation and ensuring scarcity.
With all of these factors in mind, we expect the demand to far outpace the supply in the coming months and years, creating the opportunity for Bitcoin to break all-time-highs, and cement itself as a unique and powerful economic force.
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