The advent of the COVID-19 pandemic brought on and continues to bring on some serious questions for every segment of the market, and that includes cryptocurrency. Within two days, Bitcoin was slashed in half as investors pulled their money out in droves and it seemed that almost overnight the question of whether or not Bitcoin was a safe-haven currency had been resolved. But neither was gold. The sharp truth was that panic had set in and nothing and no one was safe from this new economic reality.
But that’s the nature of panic. If you go to any shopping mall in north America right now you’ll find the evidence in empty toilet paper and paper-towel shelves. But the silver lining here is that panic is temporary, and eventually cooler heads prevail. Now Bitcoin is hovering around the CAD$9,000 mark, which while still short of its roughly $1,1000 resistance point from last month, still represents a $3,000 recovery from its $6,000 low. Now companies like Hive Blockchain Technologies (HIVE.V) and Hut 8 Technologies (HUT.T) can stop fretting about the particulars of their electrical cost to block reward ratio, and get back to work.