The traditional asset market is in turmoil and investors all over India and the world are suffering terrible financial losses owing to the reduction in trading activity due to the lockdown paired with the imposition of stringent financial regulations on traditional assets like stocks, bonds, FDs, etc. At such a critical hour only Bitcoin trading and investment can save the country from the economic slump. In this global lockdown scenario, one effective way to overcome the fiscal crisis is to trade in Bitcoin at Bitcoins Profit (https://bitcoins-profit.com/) and other trading platforms.
Traditional asset options
With the pandemic still raging on, several banks including the Reserve Bank of India (RBI) have adopted certain measures to get a grip on the situation and tackle the economic crisis. India’s central bank has reduced the repo rate by 75 basis points and has cut the reverse repo rate by 90 basis points.
The income from the interest of fixed deposits will decrease, and this will pose to be a major financial issue for senior citizens whose only source of income is the FD interest.
Owing to excessive government borrowing amid the nationwide lockdown, the benchmark of the ten-year-bond in India yield rose to 6.31% after surging by 17 basis points. The government and bank officials are apprehensive that the diminished trade activity due to the pandemic will freeze the bond market and trigger a massive collapse in the sale of bonds.
The novel Coronavirus pandemic has rattled the commodities market to the core. Like the debt and equity markets, the commodities market too has gone haywire owing to the lockdown. There has been a widespread disruption in trading that has led to the plunging prices of most commodities except gold. The prices of commodities like aluminum, lead, copper, zinc, tin, and nickel have crashed by 22% and the cash crunch has hit the agricultural commodities as well.
The government borrowing for the preparation of pandemic relief packages has adversely affected the S&P global rating of the country’s economics. S&P BSE Sensex has plunged from 42273 points to 29894 points and the ratio between price and earnings is even less than 18 which is indeed disastrous for the stock market.
The Nasdaq stock market is crashing frequently owing to the fallout in the international stock markets. Furthermore, the international investors are shifting from the emergent stock markets back to the secure dollar-backed assets creating more chaos in Nasdaq.
The forex market is witnessing sharp volatility due to the decrease in forex trading volume amid the global lockdown. The value of rupee hit an all-time negative low value of 76.86 per dollar in the thinly traded currency market.
Gold vs. Crypto
Even though the price of gold is unaffected by the lockdown, it is still not profitable to conduct trading in gold as there is no shift in its price. Trading is only feasible and profitable when there is a consistent price fluctuation, which is the inherent nature of cryptocurrencies like Bitcoin.
How can crypto revive you from the current financial crisis?
In this bleak tempest of economic crisis and depression, the only cryptocurrency can usher in peace and rest. It is the safe-haven asset that is now standing strong and braving the wrath of the pandemic.
Crypto assets are decentralized, and every cryptocurrency transaction takes place over the peer-to-peer Blockchain network without any involvement of a central bank or authority. This decentralization implies that cryptocurrency is unaffected by governmental regulations and traditional fiscal conditions of the market. Besides, with more and more investors flocking into the cryptocurrency market, due to the current state of recession of traditional financial assets, the crypto analysts are of the opinion, that the cryptocurrency market will witness a bullish shift and the price will soar.
Another reason why cryptocurrency can rescue the investors from a financial crisis is that Bitcoin and other cryptocurrencies are very easy to obtain and invest in. Trading in crypto assets is also easy, as one can rake in a fortune from the comfort of his home.