Bitcoin: Pandemic pushes price to record high for 2020 as investors turn to cryptocurrency

Although most countries have already allowed some businesses to open albeit with added precautionary measures, the economy is still far from recovering. As such, many are interested to invest in more than just typical assets, which can likely remain stable even during a pandemic. Early in 2020, before the coronavirus outbreak, financial analysts did not even consider cryptocurrency as viable. However, the health crises led experts to revise their outlook and as predicted Bitcoin's value just went up beyond what anyone expected.

While every other industry is reporting sluggish sales and trading, the blockchain market continues to report substantial growth. Aside from the ongoing economic uncertainty until the fight against the 2019 novel coronavirus ends, government treasuries have pumped even more money into the system which has caused inflation. Unlike standard platforms, cryptocurrency relies on a decentralised model which many suggest is more stable.

The Independent reports that in the last 24 hours, the value of Bitcoin has gone up by three percent. In fact, industry pundits have recorded multiple gains since March even though the global economy was being ravaged by the effects of COVID-19. Another notable cryptocurrency is Ethereum which has surged to its latest price of $430. Fixed supply assets such as gold are considered by investors as great inflation hedges.

Given that cryptocurrency also follows a fixed supply model, even traditional investors have started expanding their portfolio to include Bitcoin – which many refer to as "digital gold." So far, its record high is still $20,000 in 2018, but at $12,000 now, its growth has been remarkable for the year 2020.

MicroStrategy – a Nasdaq-listed analytics and mobility solutions company – revealed that it has spent close to $250 million in Bitcoin as its primary treasury reserve. Michael Saylor, the company's CEO stated: "This investment reflects our belief that bitcoin, as the world's most widely adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash."

Meanwhile, cybercriminals are taking advantage of the rising value of Bitcoin and have designed scams to steal the cryptocurrency. Perhaps the most controversial one to date is where hackers took over official Twitter accounts of high-profile people and businesses. The authorities have apprehended several teens who were allegedly responsible.