With market volatility pushing the global economy closer to a recession, a hedge bet like bitcoin is poised for a big price explosion.

It’s been more than 10 years since global markets have faced a problem like the coronavirus.

In addition to the obvious health risks posed with the spread of COVID-19, there are other factors to consider, especially for investors.

The first is the economic risk.

As Americans are forced to shelter in place and businesses conform to employees working remotely, restaurants, theaters and other companies are shutting down completely. Companies are laying off or furloughing employees by the thousands.

Then there is the financial risk.

The COVID-19 outbreak pushed all three major U.S. stock indexes into bear market territory — coming down more than 20% from their mid-February record highs — in short order.

In the U.S., Congress and the White House have tried to stem the tide of the outbreak with a $2.2 trillion stimulus package aimed at helping businesses and everyday Americans get through the tough times.

But those rough waters aren’t over yet. With market volatility persisting, investors are looking to technology for solutions. This is why something like bitcoin is poised for a big price explosion.

Why Bitcoin is Poised for a Big Price Explosion

Ian King

Banyan Hill’s Ian King.

With fiscal deficits rising due to government stimulus to battle the coronavirus, investors continue to look at safe havens like gold as ways to hedge against a market downturn.

Banyan Hill Publishing’s Ian King said this is where blockchain technology and cryptocurrency like bitcoin play a role.

“Fiscal deficits are exploding as spending ramps up to fight the virus. All of this adds up to a debasement of currencies,” said King, who specializes in blockchain and cryptocurrency, and is the editor of Automatic Fortunes. “In previous historical episodes, gold served as a hedge against runaway money printing. In today’s modern world, bitcoin can serve as a digital store of value. Nearly 86% is already issued and supply will be cut in half in May.”

But King said bitcoin is superior to gold because it is far easier to store, send and receive.

That is one of the reasons why bitcoin is poised for a big price explosion.

Bitcoin Circulation Continues to Grow

Since being born out of the financial crisis of 2008, the circulation of bitcoin has steadily increased over the years.

Today, the number of bitcoins circulating is more than 18 million.

It is the most widely circulated cryptocurrency on the market.

When its supply is cut in half, that will make the value of bitcoin explode to levels we never before seen.

Bitcoin Price Volatility

When it was first introduced, bitcoin prices were pretty steady. However, that all changed in 2018.

That’s because of speculation. Bitcoin transactions are investment-based because more and more people buy and sell bitcoin globally.

As you can see, beginning in 2018 until now, bitcoin prices have ranged from a high of more than $13,000 to a low of just under $4,000.

But things have leveled off a bit since late 2019 as the cryptocurrency price has bounced, but with not nearly as wide a range.

In 2018, when the price moved above $10,000 for the first time, it was due to large trading volumes — more and more people were trading bitcoin than ever before.

With the global economy in disarray and people flocking to digital currency as a safe way to make transactions, the price of bitcoin is poised for a big price explosion because consumers will look more to cryptocurrency as forms of safe payment.

Technology Adds to Bitcoin’s Value

Bitcoin is essentially data that uses blockchain technology. King said that technology creates a digital ledger to store and manage that data.

“It offers a way to store data that can be easily shared without the control of a centralized entity,” King said. “We don’t need corporate or government surveillance.”

That’s another reason why bitcoin is poised for a big price explosion.

While bitcoin and other cryptocurrencies remain volatile, they are still solid forms of making transactions. Using blockchain technology, those transactions are also safe.

With markets in disarray and government ledgers trending down, investors can look to bitcoin as another safe haven to protect against equity downturns.

That’s why bitcoin is poised for a big price explosion.

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