Has Bitcoin proved to be a reliable reserve of value in 2020? The experts answer

Blockchain technology and crypto-currency experts answer the question of Bitcoin’s trajectory through 2020.

Without a doubt, 2020 was a different year than any other year in the 21st century: the current COVID-19 pandemic, world governments printing money non-stop, „lockouts“ and „social distancing“ becoming the new norm, protests against racial discrimination and police brutality, and so on. It even made some claim that it was „the worst year ever. But as they say, „Behind every storm and black cloud, there is a sun that shines. The most important thing is to learn from all that we have been through and to improve our world and future, because there are some problems that we have to solve ourselves.

It’s also true that 2020 was a significant and dramatic year not only for people around the world, but also for Bitcoin (BTC): it experienced its third halving, increased attention from institutional investors and global regulators, the twelfth anniversary of its white paper, etc. Some even called it the „New Testament“ of finance, and others suggested using it for the utopian idea of universal basic income. Bitcoin caught the world’s attention by hacking into Twitter in mid-July, which required the crypto community to defend Bitcoin’s integrity after the event put the words „Bitcoin“ and „scam“ back into a headline. In October, PayPal announced that it would offer payments in crypto currencies, and later in November, Bitcoin was on the cover of the Wall Street Journal for its 80 percent price hike.

As 2020 began, it was hard to imagine how the world would change and how quickly those changes would occur. Despite all the negative impacts of the current COVID-19 crisis, there have been some positive developments, at least in crypto space. For example, Bitcoin’s volatility has decreased from its peak in mid-March, and the pandemic has highlighted Bitcoin’s most important value – its decentralized nature. Some even argued that the pandemic has underscored the benefits of cryptosystems to the world. And while Europe experienced the shift to a cashless world, the United States remained more conservative and did not want to give up paper money.

An imminent price of $30,000 for BTC? This Bitcoin hodlers‘ metric suggests the next upswing

One thing became evident due to the effects of COVID-19: there are serious problems with the current financial system that could be solved by Bitcoin and the technology behind it. And the similarities between the two recent financial crises, the first in 2008 and now in 2020 due to the pandemic, revealed the systemic problems of centralized financial systems. While the first crisis gave birth to Bitcoin, the current one has caused people to turn to decentralized technology and Bitcoin en masse in the midst of the global economic recession. Some even argue that over the next decade, Bitcoin will play an important role in the transformation of the global economy, called „The Great Readjustment,“ and that the mass adoption of crypto currencies will be led by the millennium generation.

Central banks printed an estimated $15 trillion in stimulus in May alone as anti-pandemic measures to save the world’s economies, throwing the U.S. dollar under the bus, as some said. And these measures caused people to turn to alternative financial tools, making Bitcoin a hedge against inflation and even an alternative to traditional finance altogether. Some even suggested that governments make a monetary transition to Bitcoin to solve national debt problems.

Another important milestone of the year 2020 was the increased interest of institutional investors in Bitcoin. Although this trend seemed to be „built on nothing but hope“ earlier this year, 2020 surprised everyone here as well. Driven by the possibility of rising inflation, Bitcoin’s hedging capability couldn’t go unnoticed by high-profile investors who saw cryptomoney as an important part of a diversified corporate treasury, becoming the top digital asset holders this year.