If the outbreak of coronavirus motivates more people to store value in bitcoin then why don’t we see prices increase as virus continues to spread ? If the outbreak of coronavirus motivates more people to store value in bitcoin then why don’t we see prices increase when the virus continues to spread?
Do you have any proof of bitcoin price related to the plague? Or people often consider bitcoin as a valuable archive?
In times of stress, man’s most common reaction is lack of determination. The next common reaction is panic.
It will take several months for people to evaluate the consequences of coronavirus. At that point we will have to see what happens. Bitcoin’s price does not have any correlation to any other asset. Bitcoin has never seen a financial disaster.
It’s hard to oversay how complicated the global financial situation is right now. Coronavirus is just a bigger calculation activation. In America, actual wages have dropped for several years and our manufacturing sector has been in recession.
Our central bank has opened overnight lines of credit for banks for months to compensate deficiency. China has had issues with shadow banks for a long time and Europe has dealt with really weird behaviors in its bonds market for at least a year.
We can’t judge what’s wrong, what will happen or what needs to change. Suffice to say, bitcoin prices move without regard for other markets. This has been clearly proven (Morgan Stanley, Yale and many smaller researchers proved this quite convincing).
Consequently, you should not expect to see the price change of bitcoin based on any other market, regardless of whether people consider it a safe haven.
And think of it this way if you lose your job or get sick you don’t care about what is a store of value. You need money. You will use whatever you can get, whatever others will accept.
From an investment perspective (not thinking about technology itself), bitcoin is a fence against collapse in traditional financial system. It works no matter what banks do.