Bitcoin Couldn’t Avoid the Coronavirus Panic, But its Fixed Supply Might be Attractive Vs. Fiat Printing

Bitcoin couldn’t avoid the coronavirus panic, crashing by a full 50% on March 12th. However, Bitcoin has since been recovering and might just start being attractive with central banks printing money.

Specifically, the US Federal Reserve has announced a number of measures to help prop up the US economy, and many of the measures amount to printing more money (see CoinDesk’s “Into the Unknown: No Limit on Fed Money Injections“).

One plus of Bitcoin is that its supply is static, only 21 million Bitcoin that will ever exist. Not only that, but as people lose Bitcoin, that number dwindles. Not only that, but the issuance of the supply is being cut in half in less than two months.

So while central banks are printing, Bitcoin’s finite printer is getting set to slow. Doesn’t mean Bitcoin won’t have a bumpy road, but for the moment crypto prices are up significantly from the bottom.