The Covid-19, the bête noire of the established order
Because of the current crisis, some of Bitcoin’s oldest detractors, notably Nouriel Roubini (Dr.Doom), have come (punctually) to recognize the queen digital currency as a true store of value. The wind of change seems to be here, for others as well.
The Corona, gas pedal of change
It’s been a few years now since we began a generalized transition to digital. The Covid-19 will have had the good deed of forcing us to carry out, in a few months, major transformations that would have taken years in normal times.
Among these transformations, 2 play strongly in favor of Bitcoin and digital currencies in general: the considerable increase of online transactions and the unreasonable production of fiat currencies.
The banknote that overflows the vault
Let’s quickly go back to the concept of helicoper money, which is printing as many currencies as possible and then lending it at the lowest possible rate to companies so that they can meet their obligations.
The result of this monetary policy? More than 23% of the dollars printed since the advent of money were produced in 2020. Faced with this proliferation of greenbacks, one question arises: what is the value of this ever-growing money supply?
This question, initially reserved for the most fervent detractors of sovereign currencies, has now made its way to Wall Street where confidence in the dollar is gradually waning.
The boom in online transactions
Due to social distancing, there has been a marked increase in online transactions, both for purchases and money movements. The last few who still refuse to accept paper money transfer orders have had to go digital when bank counters closed and a large part of the population has resorted to e-commerce.
In this new all-digital paradigm, surveillance is increased. Indeed, the more we use online services, the more data we generate to analyze our behaviors. Bitcoin could therefore be an alternative to circumvent this generalized surveillance.
At a time when even the government is calling for a boycott of the web giants, a growing part of the population is becoming aware that the collection and analysis of our data could be detrimental to them. This phenomenon could, once again, play in favor of Bitcoin and its pseudonymity, limiting intrusions into our privacy.