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The rise of Bitcoin


Here is a chart of Bitcoin prices in one year.

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See where quarantine started?

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So why did it rise?

Mainly, it's because of the quarantine stopping people from going to stores to buy their stuff, resulting in many people turning to online stores such as Amazon to buy everyday items. Even memes have reflected this point.

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So being the currency of the internet, it's no wonder that Bitcoin's prices soared.

But why did it not drop when oil and other stocks dropped? (except toilet paper and sanitizing wipes, of course.)

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Easy. Bitcoin's prices are directly linked to it's network effect, which increases when more people use it and decreases when less people use it. If I gave you a piece of paper, said it was worth one dollar, and other stores let you buy from them using that piece of paper, then it would be worth one dollar.

Unlike oil and other materials, services, etc. Bitcoin has value due to people assigning value to it. Therefore, it is not affected by any other circumstances.

Thank you for reading.

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The rise of cryptocurrencies during COVID-19
The rise of cryptocurrencies during COVID-19

To document the reasons and predict the future of the rise of cryptocurrencies during the COVID-19 quarantine.

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