Covid-19 has accelerated many technological trends. Luddites have been forced into online transactions. As people become more comfortable in this world, they drop their aversion to digital currency.
Bitcoin’s scarcity has also become an advantage in a climate denominated by abundance. Quantitative easing has been used by every government in response to the pandemic and it is fast becoming a permanent tool of fiscal stimulus. Eventually, confidence in centrally created money may dissipate.
Even Nouriel Roubini, one of the digital currency’s foremost sceptics, tempered his position. Bitcoin, he said, is ‘maybe a partial store of value, because … it cannot be so easily debased because there is at least an algorithm that decides how much the supply of bitcoin raises over time.’
The ‘new normal’ looks good for Bitcoin.