The year of Bitcoin

Mike Novogratz, founder of Galaxy Digital, claims that this year should be a turning point for Bitcoin.

The year of Bitcoin

The economic crisis and a new opportunity for cryptocurrencies

Mike Novogratz, founder of Galaxy Digital, claims that this year should be a turning point for Bitcoin. If we remember that Bitcoin was created after the great recession that occurred in 2008, it is not very crazy to think that this new recession, which is just beginning, gives Bitcoin and cryptocurrencies a new opportunity to demonstrate their full potential. Some economic analysts are already hinting that the crisis we are currently experiencing in the midst of the crownvirus pandemic could be significantly more serious than the 2008 economic crisis.

** The cryptocurrency market begins to show clear signs that a new uptrend will begin. Bitcoin is clearly the strongest cryptocurrency within the crypto market, however some altcoins like Ripple (XRP) intend to compete for that position.

Following this line of thought, Novogratz wrote on his official Twitter account: “BTC will continue to be volatile in the coming months, but the macroeconomic backdrop is the reason it was created. This will be and needs to be the year of BTC. "The great global panic that has been generated by the pandemic and the huge falls in shares has caused the" flight "of investors, even of basic products that are considered" safe "as the Gold. Novogratz assures that if gold did not resist the crisis, neither will the price of Bitcoin, however he added: "[Bitcoin] was always a game of trust. All cryptocurrencies are. And it seems that global confidence in almost everything has evaporated.”

** In the last six months the price of Bitcoin has been devalued in a context of high volatility. Opinions are varied, but the idea that Bitcoin is preparing for a new bull rally is getting stronger.

Traditional markets suffered their worst declines since 1987. The decline was quickly attributed to the problem of the crownvirus pandemic, however many analysts who have been following data from the economy long ago claim that the financial and economic crisis was foreseeable even before The new crownvirus was known. Binance CEO Changpeng Zhao says the pandemic was only the trigger for the crisis, the "straw that revamped the glass," but the real cause of the crisis is the collapse of a visibly fragile world economic order. Bitcoin has a new opportunity to demonstrate its potential as it was precisely designed as an alternative to the current fragile world monetary system.