Coronavirus Update: Pandemic drives Bitcoin adoption - Sneh Bhatt, the CEO of Monarch Wallet

The coronavirus pandemic has had dire consequences on the global economy and plummeted the whole industries, like aviation, tourism, entertainment. Governments are desperate to save their economies from sharp collapse and calm down social unrest caused by galloping unemployment rates and full lockdowns.

The US Treasury aims to borrow another $3 trillion in the 2nd quarter to finance governmental coronavirus stimulus programs. Thus, the total amount of government debt will exceed $25 trillion. The news allegedly improved short-term sentiments on the markets and pushed both stock indices and major cryptocurrencies higher.

Bitcoin demonstrates a direct correlation with S&P500 in the near-term. They may part ways in the long run. Soaring public debt, ailing economy and inflationary pressure created by massive stimulus programs will take its toll on market sentiments and push stock markets into a bearish death spiral. Meanwhile, Bitcoin is regarded as a natural hedge against inflation and fiat devaluation. 

According to Sneh Bhatt, the CEO of Monarch Wallet, this situation will speed up the global cryptocurrency adoption. In an exclusively written comment to FXStreet, the expert said:

“Bitcoin is currently the best-performing asset of 2020 beating out even gold “safe haven” of the traditional assets. The pandemic alone will not speed up cryptocurrency adoption, but as governments try to save their own economic situation by printing more of their own currency it will severely devalue their currency. This will push people to other forms of currency to help remediate the situation. Bitcoin is the answer to inflating currencies.”

This view is shared by many industry participants, including Mike Novogratz. In April, he suggested that it was time to buy BTC as a hedge against inflationary policies of global central banks.