Categories
Crypto Daily Topic Cryptocurrencies

5 Best Websites to Buy Bitcoins Directly from Your Device, Anonymously

Blockchains are secure and imitable, but these publicly-circulated ledgers aren’t anonymous. In contrast, crypto assets are designed for transparency. If you make crypto investments, analysts can dedicate sufficient resources to track down your identity.

The Bitcoin blockchain and other crypto networks qualify as financial services, and the law requires them to know the customers they serve. The Anti-Money Laundering legislation requires them to collect your ID at some point while serving you.

Most folks took an interest in these digital assets because they thought transactions would be untraceable. While cryptocurrency networks don’t offer anonymity by default, there are ways through which you can buy bitcoins anonymously.

The convenience of buying cryptos directly from your device is unbeatable, and if you can remain anonymous while at it, even better! 

In this article, we highlight some of the websites that make it easier for you to achieve this. These websites charge a bit extra than what bitcoins usually cost, but the kind of privacy you’re after does not come for free.

So, let’s dive into five of the best websites that are absolutely worth your time. 

1. LocalBitcoins

LocalBitcoins facilitates peer-to-peer crypto exchanges. It works pretty much like eBay, and it’s fueled by willing-buyer, willing-seller consensus. You can find numerous sellers offering their bitcoins for cash. P2P Bitcoin exchanges enable sellers to bypass costly taxation, and LocalBitcoins will empower you to buy bitcoins without any ID.

Through LocalBitcoins, you can directly communicate and make deals with potential sellers. The platform makes money from these exchanges by levying escrow services. These services are powered by Smart Contracts, making it hard for scammers to dupe diligent bitcoin buyers.

This website is reliable because it rates sellers by keeping reviews of their transaction history. Therefore, you can tell apart genuine sellers from scammers by just scrolling.

You’d be surprised by just how many sellers are out there. The great thing is that LocalBitcoins is available anywhere there are sellers, and you could buy bitcoins anonymously at your local coffee shop.

2. BitQuick

This website lets buyers purchase bitcoins via cash deposits. It empowers you to buy bitcoins fast and anonymously, but the cryptocurrencies cost a bit more.

BitQuick was launched in 2013 and is registered in Ohio, United States. This website only serves Americans, and it only accepts cash deposits. You can buy bitcoins anonymously from sellers by depositing cash to their bank accounts.

You can head over to the website and find suitable sellers. After agreeing on the pricing, the seller locks currencies into the BitQuick escrow, and the bitcoins are transferred to your crypto wallet when you deposit the agreed cash amount.

For verification, you must meet up with the seller, who should take a picture of the deposit receipt and upload it to the system. This service only charges 2% for buying bitcoins.

BitQuick only sells bitcoins. You can buy as little as bitcoins worth $10 and as much as $10,000 worth of bitcoins at a go.

3. Wall of Coins

Wall of Coins is yet another peer-to-peer marketplace for trading cryptocurrencies. This service is registered under Genitrust Inc., and it generates daily traffic of 25,000 unique visits.

Wall of Coins is famous because users can buy bitcoins anonymously via cash. It helps buyers and sellers to come together, serving the United States, the United Kingdom, and Germany.

Enjoy anonymity, buying bitcoins without an ID because Wall of Coins is unregulated. You can buy and sell various cryptocurrencies on this website, which accepts three methods of payment, including:

  • Bank of America’s Teller Assist.
  • MoneyGram Deposit.
  • Cash deposits at banks.

This website does not impose transaction limits. It is also a great option because it offers a live chat, allowing you to communicate with sellers directly. You can also access customer support via phone calls.

Wall of Coins holds sellers’ bitcoins in escrow, and it releases them to you when you complete the payment instructions.

4. Bisq (Formerly Bitsquare)

Bisq offers fully decentralized exchanges, and it does not require any personal information or ID verification. Therefore, this service does not hold users’ funds.

It is a peer-to-peer network, and users exploit it for anonymity. They visit it via secure browsers such as Tor. Users trust the platform because of its open-source structure.

Bitsquare launched in 2016, and it allows bitcoin sellers to create offers by locking agreed amounts in escrow. Both sellers and buyers make holding fees of 0.001BTC, and they also pay transaction fees for the service.

Since Bisq does not hold any money, crypto or fiat, it uses arbitrators as escrows. Bisq arbitrators are frequent users of the platform who perform escrow services on third-party terms.

Arbitrators deposit huge security fees to Bisq to finance trust. If arbitrators make away with seller’s bitcoins or buyer’s fiat money, their deposits can make up for the losses. They perform this role in the pursuit of earnings from the transaction fees.

5. LocalCryptos

This website serves over 100,000 users in over 100 nations. It is a non-custodial platform offering peer-to-peer, decentralized crypto trade.

LocalCryptos empowers you to buy bitcoins anonymously, most transactions only taking ten minutes. No third parties are involved, and your messages with the seller are encrypted. This website is secure and trustworthy thanks to its blockchain integrity. It offers escrow services for you to buy bitcoins online without the fear of loss.

This Australian crypto exchange lets you track ads of people selling various cryptocurrencies. It does not impose national restrictions, and it is welcoming to foreign investors. 

The ease of use is phenomenal. You have over 40 payment options available, and you can use non-custodial wallets to enhance control over your financial assets.

LocalCryptos will charge you 0.75% in trading fees when you buy on its platform.

Parting Shot

Bitcoins are pseudo-anonymous, but most supporting services such as emails, banks, and custodial wallets require ID verification. Analysts just need to pick up your number or email address to reveal your identity.

Your best shot of buying bitcoins anonymously is through peer-to-peer exchanges. Sellers on these platforms are probably just as motivated as you are in seeking anonymity. 

No matter how anonymous websites selling bitcoins get, it beats the point if you use custodial wallets. Non-custodial bitcoin wallets don’t require your ID verification, but custodial wallets report to financial regulators.

Don’t get anonymous money and take it straight to the scrutiny of third-parties. Use non-custodial digital wallets with the best websites to buy bitcoins directly from your device, anonymously.

Do you know of other ways to buy bitcoins anonymously? Be kind enough to share your proven tricks with us in the comments section. Also, feel free to share this piece with loved ones who want to buy bitcoins anonymously.

Categories
Crypto Daily Topic Cryptocurrencies

How to Buy Bitcoin with a Credit/Debit Card

Credit/debit cards have enabled us to make instant, convenient, and hassle-free payments since the founding of the Diners Club in the 1950s, and today, this possibility has been extended to the purchase of Bitcoin. Buying Bitcoin with a credit card is among the easiest ways to get yourself some crypto. 

But where can you buy Bitcoin using a credit card? And is it safe? What about transaction costs? We’ll look at these concerns and more in this article.

How You Can Buy BTC with a Credit Card

When it comes to buying BTC with a credit card, there are two main possibilities. 

i) Direct payment – This is the least confusing option. With direct payments, you go to the exchange’s website, make your purchase and use the Visa/MasterCard/AmericanExpress (or just the cards that are available) option. The checkout process will be similar to buying anything else with your credit card. 

ii) Through a payment gateway/ payment service provider – For reasons such as cost savings, bonuses, and offers, you might want to pay through a payment gateway or money transfer service provider such as PayPal and Skrill. If you’re new to buying BTC, or if you’re buying just a few coins, this long route might not make much sense. However, if you are a high-stake investor, you might want to take advantage of any slight margins, although with increased inconvenience.

To buy Bitcoin with your credit card through a payment gateway, you’ll need to load your payment gateway’s account with funds first. Then, when checking out from your exchange, you choose to pay with Skrill/PayPal or whichever method you’re using. 

Best Places to Buy BTC with a Credit Card

Most likely, you will be buying Bitcoin from a crypto exchange like Coinbase, Kraken, or eToro. There are other methods, such as buying from individuals, but we’ll be focusing on exchanges.

That said, the following are among the best exchanges where you can Bitcoin using your credit card. These exchanges have been selected based on ease of use, buying limit, security, and transaction costs. The exchanges are not ranked in any particular order.

#1. Coinmama

Purchases made with credit cards usually have various limits to mitigate fraud. Coinmana offers among the highest purchase limits. The exchange is also available globally, which makes it a convenient option wherever you are. Additionally, the exchange has a reputation when it comes to reliability and trust among its user community.

When buying BTC on Coinmama, you will need to register/ sign in and create a crypto wallet on the platform. Then, when you get to the step of selecting a payment method, you’ll be required to choose from either Visa or MasterCard. Card payments are instant and attract a 5% processing fee. This cost is a bit high compared to going through a payment provider such as Skrill (Skrill charges 2.5% of the transaction value). Nevertheless, the experience is swift.

#2. Coinbase

Coinbase allows you to buy up to $150 or €150 worth of BTC per week. Debit card payments are accepted in all countries where Coinbase operates. However, you cannot buy BTC with a credit card if you reside in the US, Canada, Australia, and anywhere within Europe. 

If you want to buy BTC on Coinbase using your card, you will need to set up your user profile and link your credit/debit card. Later on, when you are actually buying BTC, you will select your already-added card at checkout. Transactions cost 3.99% regardless of the amount, and settlement is instant. The buying experience on Coinbase is also smooth.

#3. Bitpanda

Bitpanda is another reputable exchange where you can buy BTC using your card. First, you will need a Bitpanda account to buy BTC. Once you log in to the account, you can navigate to the ‘Buy’ tab on the menu. Bitpanda allows you to add the payment method during checkout, so you don’t have to link your card in advance. 

After selecting ‘Buy,’ you will see large buttons with the names of some of the major cryptos and other buttons for payment methods. You will need to make the appropriate selections to proceed. If you pay by card, both credit and debit cards are supported, but it must be Visa/MasterCard. Once you have selected your card, the rest of the process is easy to complete. 

Bitpanda offers one of the most secure card payment options. To make a card payment for crypto purchases on this exchange, your card must have 3-D Secure verification enabled. Note that there’s nothing you can do if your card does not support this protocol (other than look for another exchange).

#4. CEX.io

CEX.io is one of the earliest cryptocurrency exchanges to exist. Even so, it has never moved its operations beyond Europe, some countries in South America, and some states in the US. It is still a great place to buy BTC using your card if you are from any of these regions

CEX.io boasts of unmatched security and trust. The exchange is registered in the US as a Money Services Business. In the UK, it is incorporated as a private limited company. CEX.io is also PCI-DSS compliant. PCI-DSS is the global security standard for card payment providers. Due to the company’s focus on security and compliance, user experience is adversely affected. For instance, transaction verifications can take up to 30 minutes. 

Security/ Safety

The security and safety of your credit/debit card are paramount. Generally, buying crypto using cards is not riskier than using your card for your regular shopping. However, it is important to do the basic checks to ensure that you are dealing with legitimate and reputable exchanges. 

When using your credit card to buy Bitcoin, you will inevitably share your details with your exchange. Thus, it is essential to ensure that you’re dealing with a legitimate exchange, and two, the exchange is reputable. If you leave your card details with a shady exchange, how can you be sure that your card details will not be used for fraudulent purchases?

Final Thoughts

Credit/debit cards are a relatively easy and convenient option for paying for your Bitcoin purchases. This payment option is also supported by most major exchanges like Coinbase, Coinmama, and Bitpanda. Additionally, paying for BTC with your card is safe, as long as you’re dealing with reputable exchanges. On the downside, cards have restrictive transaction limits, which may disadvantage large buyers. Also, some exchanges do not accept credit cards from certain countries. Whichever the case, you can always find an option among the many. 

Categories
Cryptocurrencies

Buying Bitcoin with Skrill: Don’t Try Before Reading This!

Bitcoin is the world’s most popular currency. So it’s not a surprise that most payment platforms worth their salt support the currency. One of these platforms is Skrill, the London-headquartered money transfer company that’s now one of the most popular globally. 

This article looks at how you can purchase Bitcoin via Skrill. We’ll dive briefly into what Skrill is, whether you should consider using it, and the best places to buy BTC with Skrill. 

What is Skrill?

Skrill is an international payment platform through which users can transfer, send, and receive money from across the globe. It sets itself apart from other money transfer companies such as PayPal through low-cost transactions. You can open a Skrill account in any of the 30+ supported currencies. Once you have an account, you can add other currencies if you’d like to receive payments in different currencies. Skrill is widely accepted by merchants worldwide, including cryptocurrency exchanges, which is why you need to know how you can purchase Bitcoin using Skrill. 

Should You Buy Bitcoin with Skrill?

Wondering whether it’s worth buying Bitcoin from Skrill? Apart from being just another option (the more options you have, the better), Skrill can save you some money. Additionally, you can buy Bitcoin directly from your Skrill account with your local Fiat currency. There are many ways you can fund your Skrill account to facilitate a crypto purchase. Skrill also offers convenience and ease of use through its mobile app. Finally, crypto purchases are instant, and your account is credited with the balance within seconds. 

With that, let’s take a look at where and how you can do it so. 

Best Places to Buy Bitcoin with Skrill

#1. Skrill

Skrill itself is one of the best places where you can buy BTC. Buying Bitcoin from Skrill is incredibly easy and straightforward. If you have an account, you will see the option when you log in. The interface is particularly user-friendly – simple, elegant, and minimally designed. 

To buy BTC from your Skrill account, you will need to fund it first. The quickest way to do so is to use your credit card. Whichever card you’re using, funding your account will cost you around 2.5% of the transaction value. Most of the major cards are accepted. 

Apart from Bitcoin, you can also buy other major cryptos on the platform. This is especially important if you’d like to diversify your crypto investment portfolio. As a bonus, you can also sell crypto from within your Skrill account. So buying BTC on Skrill is not only highly convenient, but it’s also option rich. 

#2. Paxful

Paxful is a peer-to-peer (P2P) Bitcoin marketplace launched in 2015. The platform allows you to buy and sell Bitcoin to other users. Like all other P2P marketplaces, users can browse through different seller profiles and select the one that offers the best rates and accepts Skrill payments.

Whether you have an account or not, Paxful allows you to filter sellers by country, accepted payment methods, and so on. When you select a seller, the platform gives you more details regarding the offer and the seller. You can even see the seller’s rate in comparison to the average market rates and determine whether their offer is fair. If your Skrill account is already funded, buying Bitcoin from Paxful is super easy. You will only need to check out with Skrill and complete the easy steps that follow. 

Best of all, Paxful summarizes many options for you, allowing you to quickly and simply purchase Bitcoin. 

#3. Capital.com

Capital.com is a UK-based crypto broker that allows users to buy and sell most of the major cryptocurrencies. Since it’s a broker, you’ll be either buying or selling directly to the company. If you are conscious of the risks of buying crypto from a P2P exchange, Capital.com is a great go-to option. 

#4. eToro

eToro is one of the biggest crypto exchanges, and it supports buying Bitcoin using Skrill. eToro is a social trading platform, which means it allows you to copy-trade. The platform is designed mostly for experienced traders. Nevertheless, its copy trading feature allows novices to take part.

When it comes to buying Bitcoin, eToro is one of the most sophisticated trading platforms. It presents multiple dashboards offering a preview of the most important BTC indicators, real-time prices included. Setting up an account is a little cumbersome as it requires you to provide numerous details. However, once all is set up, the rest of the purchase process is relatively easy. 

#5. Coingate

Coingate is a cryptocurrency payment gateway that allows businesses across the globe to accept Bitcoin. Crypto traders can also buy and sell their digital assets on the platform without making any deposit. When you choose to buy Bitcoin using Skrill, you’ll be able to make an instant payment without the need for registration or verification, as long as you’re verified on the platform. Coingate’s speed and ease of use make it an ideal option for users who want to buy Bitcoin quickly and without hassle. 

Coingate is sometimes criticized for offering poor rates and unsatisfactory customer service. However, user experience on the platform is generally smooth, and you’re unlikely to face challenges buying Bitcoin or paying with your Skrill account. 

#6. Bitpanda

Bitpanda is a world-famous crypto exchange that allows users to buy and sell various digital assets with the convenience of mobile and desktop options. Bitpanda has made buying/selling Bitcoin as easy as ABC. To buy Bitcoin with Skrill on Bitpanda, you need only follow three steps:

  • Create a Bitpanda account or log in if you have an existing one.
  • Verify your identity and fund your Bitpanda wallet. When depositing funds, you will be directed to select the source of funds, where you’ll choose Skrill.
  • Proceed to buy Bitcoin.

The difference between Bitpanda and Coingate is that with Coingate, you have to fund your Coingate account first. However, the whole buying experience is fast and user-friendly. 

Final Thoughts

Skrill is one of the most recognized global money transfer platforms. The platform attracts users with its low-cost money transfer offerings. When it comes to buying Bitcoin with Skrill, users get various options ranging from Skrill itself to the numerous exchanges that accept Skrill payments. If you’re using Skrill on a different platform, you need to evaluate the platform’s ease of use, transaction fees, and available withdrawal options. As for Skrill itself, Bitcoin purchases are simple and instant, which you should take advantage of.

Categories
Cryptocurrencies

How To Avoid the Bitcoin FOMO and Double Your Investment

‘The hardest thing to do in a bull market is to sit,’ says Mike Novogratz, a renowned Bitcoin evangelist. This is a feeling most investors can relate to. In a bull market, prices surge, and volumes skyrocket. And with the wave comes an irresistible urge to board the bandwagon – the fear of missing out (FOMO).

Beginning July 2020, Bitcoin has shown steady performance against the dollar and altcoins. However, it’s the currency’s performance in October and November that has left investors scrambling for the 18.5 million or so Bitcoins in existence. The Bitcoin FOMO is officially here, and many investors will make blind decisions. 

This article will look closely at the ongoing frenzy, what it means to investors, and how to approach it. 

Bitcoin in 2020

Bitcoin started 2020 modestly, only managing to fetch about $7K in January. It briefly jumped to $10K before plunging into an abyss, exchanging at less than $5K in March. But that seems to have marked the end of the dramatic falls. From mid-March, the currency started recovering steadily, and towards the end of July, it hit the symbolic $10K figure. Every time Bitcoin climbs to $10K, investors start getting all fidgety, as has been the case several times.

Since Bitcoin reached $10K in July, it has been going up almost consistently. In less than three months, it has gained over 50%, which is more than impressive. It isn’t easy to point out with certainty how things will turn out. However, investor greed and excitement is likely to push the figures even higher, at least in the short run.

What is the Fear and Greed Index Saying?

The crypto Fear and Greed Index is a contrarian scale that expresses investors’ general sentiment with regards to fear and greed. The idea is that when fear is high up there, investors will shy from trading, and that will cause prices to decline. On the converse, if investor greed is high, increased trading, and prices will rise. 

Different crypto fear and greed indices have shown a consistent increase in greed. A higher score represents more greed, while a low score represents more fear. Since these two factors are on opposite sides of the scale, one declines as the other increases. As reported by the fear and greed indices, the trend has closely resembled Bitcoin’s price trends all year long. 

Trading volume can give a clear picture of what is going on in the Bitcoin market. Exchanges everywhere are reporting sky-high volumes. 

An increase in volume usually triggers an increase in prices and hence an increase in market cap. 

What Has Caused the Sudden Interest?

When Bitcoin reached $10K in July, there was news all over the interweb covering this historical moment. Crypto evangelists and analysts, once again, resurfaced giving their expert opinions and predictions on how Bitcoin was going to double its value unless something ‘really wrong’ happens. You could look at it like a self-fulfilling prophecy, where speculators create so much hype that the market inevitably skews to their predictions. We certainly cannot underestimate the power that speculators have on market movements. In this case, there can only be little doubt that positive news about Bitcoin’s prospects contributed to increased interest in the currency. 

News is not the only positive thing that has been going around. In 2020, there has been a particular corporate interest in crypto. Several organizations, some of them high-ranking, have expressed interest in adopting cryptocurrencies. In October, Square – a global financial services provider – bought 4,000 Bitcoins for about $50 million, saying that it believes Bitcoin aligns well with the company’s purpose. Spending such amounts of corporate cash on buying crypto signifies corporate confidence in the future of cryptocurrencies. 

Just recently also, PayPal announced plans to have Bitcoin and other cryptos on its payments platform. This announcement was immediately followed by a surge in BTC prices to reach $12K. Several other top-tier corporations have expressed interest in mainstreaming cryptocurrencies, and this is undoubtedly part of the cause of the sudden surge in interest in crypto. 

What You Should Do

If you had not invested in Bitcoin before it broke the $10K barrier, you might be late to the party. Normally, by the time the buying frenzy kicks in, early-bird investors will be counting profits. Look at it this way, those who bought Bitcoin before July 26, that’s right before it surpassed the $10K high, are already counting a 50% profit less than three months down the line (BTC was at $15K at the time of writing). 

Even so, not all is lost. There are many indications that the Bitcoin market will be on the bull run for some time – how long that is, is a matter of conjecture. Therefore, you can still invest in BTC at this time and make profits. 

If you are determined to take the risk, here are some things to consider:

#1: Set Your Investment Goal – One of the unforgivable mistakes an investor can make is not to set goals. Such blind investments unsurprisingly end in tears. Setting a goal means having a plan for when to buy and when to sell. Just like gambling, you have to know when to hold them and when to walk away. For instance, you can decide to buy and sell when the price hits a certain figure, or you could decide to sell after a fixed term – regardless of whether you have gained or lost.

#2: Do Your Due Diligence – This is usually mandatory. Even if a reputable investor has advised you, you still have to do your due diligence. This may include seeking a second opinion, evaluating your finances, finding out whether you are ready to bear the risk, and so on. Because at the end of the day, it is your money that is at stake. Rushing into buying Bitcoin, especially amid such hype, may be regrettable. 

#3: Consider Altcoins – While all the attention is on Bitcoin, investors are busy ignoring other cryptocurrencies. When the Bitcoin market eventually heads for the bear run, investors might look at other cryptos. If you invest in the right altcoin at this time, you might be where Bitcoin’s early bird investors were before the frenzy began. 

#4: Sit on Your Hands and Lock Your Phone – Well, not literally, but if you can’t resist the temptation even when nothing makes sense, just avoid the markets altogether. This decision might save the little you have from drowning away in a possible market crash. As far as investment is concerned, you can consider that a profit.

Final Thoughts

Bitcoin’s recent performance has generated a lot of interest among investors. People are rushing to buy BTC, as evidenced by the increase in trading volume across exchanges. It would be great if we could all join the bandwagon, but extra caution is necessary for such market movements. Avoiding the hype is key in making a sound investment decision. You can invest in altcoins or simply avoid the markets until such a time when you can be under less pressure to make decisions. 

Categories
Crypto Daily Topic Cryptocurrencies

Should You Buy Bitcoin If The Fed Releases Stimulus?

The covid-19 pandemic has put a lot of pressure on economies. Nearly every region has recorded an economic slowdown since authorities began restricting the movement of people. Some governments have tried to rescue their economies from drowning, while others have done nothing. But the US government has been contemplating a stimulus package after it became clear that the central bank is running out of options.

The release of a stimulus package will invariably affect the economy. By extension, activity in the crypto space will be shaken. Washington has delayed the release of stimulus, but this fiscal intervention seems inevitable in the long run. When that happens, will it be our cue to buy crypto? Well, read on to find out.

How Stimulus Works

During an economic slowdown, such as the one being experienced due to the current pandemic, one of the biggest challenges the economy faces is a restricted cash flow. As people are cash-constrained, the volume of money exchanging hands declines. Since the beginning of the pandemic, there has been a coin shortage in the US. 

A fiscal stimulus can be achieved by having the government cut taxes or increase its spending. When taxes are reduced, people will have more disposable income, and this will encourage spending. In the latter case, an increase in government spending will inject more money into the economy, thereby bringing down the unemployment rate. In either case, the idea is to increase the motivation for spending and reduce the motivation for saving. 

When people are motivated to spend, currency deflation may result because people have money but do not produce more goods and services. The proposed $6 trillion stimulus is over 40 times Bitcoin’s market capitalization. One can only imagine how disruptive releasing this money can be. As we shall see later, the package will impact bitcoin and other cryptos in different ways.

The Case for/against Stimulus

The Fed has so far tried a range of options for keeping the economy afloat, including intervening in the stock markets and dishing out stipends to low income-earning Americans. Economists usually differ on the idea of meddling with the economy. One side of the table argues for a free-market approach, while others argue that government intervention at the right time is usually the best way out.

The problem with the stimulus is that it increases the country’s debt-to-GDP ratio. As will be explained later, people are getting money for work they have not done. This is essentially like borrowing money from the future. Technicalities aside, the issuance of stimulus introduces people’s risk of not using the money for the intended purpose. Beneficiaries can hoard the money in fear of economic uncertainty. This will keep the economy under strain, making crypto appear as the more attractive alternative. 

The other possibility is binge spending – yes, people tend to spend recklessly in times of inflation. This phenomenon typically results in even more inflation. The outcome? More people flock to crypto, which at such times seems immune to currency deflation.  

Impact on Bitcoin/ Cryptocurrencies

#1: Increased Spending on Bitcoin

There is a possibility that when the Fed releases the $1,200 checks, many will spend the money on buying Bitcoin. When the government started rolling out the coronavirus stimulus checks, it was reported that people were putting the money into waggish uses, including the purchase of tigers, guns, and Bitcoin. Judging from sentiments expressed on Twitter shortly after the announcement, Americans were eager to spend the money on non-essentials. 

One Twitter poll sought to know how many would spend their checks specifically on Bitcoin, and a whole 52% of those who qualified for the package said they were going to spend all of it on Bitcoin. The bottom line is that people spent their checks on Bitcoin, and they will do it again. If this happens, Bitcoin trading volume will increase, which will likely trigger a jump in the already-increasing BTC prices. Think about it.

#2: Devaluation of the USD

Stimulating the economy by giving people money will likely cause the USD to lose value and start fetching less on the forex market. This is because you are basically giving people money for work they have not done. Then, there is a (controversial) perception that Bitcoin and crypto, in general, is a haven for assets in times of economic crises. When these two theories are brought together, an influx in Bitcoin investment is very much conceivable. 

You see, investors holding their savings in dollars fear that a devaluation of the currency (in this case, as a result of releasing stimulus) might cause them to lose a significant portion of their savings. On the other hand, Bitcoin is flourishing in the bull market. So, it is only natural for investors to turn to Bitcoin if this money is released to Americans. A likely outcome in such a case is growth in Bitcoin’s demand, which means increasing prices.

Bitcoin’s Advantages (Amid this Crisis)

#1: It’s Not Even the Value, It’s Decentralization 

Bitcoin has a huge advantage over the USD in this crisis, and that’s the fact that it is decentralized. Unlike the dollar, they can’t just print more Bitcoin. This feature guarantees its investors that the risk of artificial deflation is minimized. Of course, there can be no guarantee that crypto will not see the bear run as long as the Fed keeps pumping dollars into the economy, but what are the chances?

#2: As We Speak, Bitcoin is on the Bull Run

Decentralization is great, but we can’t ignore the fact that Bitcoin is currently recording unusually impressive performance. As an investor looking for alternatives to the dollar, which is at risk of deflation, Bitcoin must not be far from mind. The way out can only be crypto since the stocks are not an option. Although share prices may see a decline if inflation indeed kicks in, it’s not a good idea to invest during the bear run. So, it looks like Bitcoin carries the day.

Final Thoughts

The coronavirus pandemic has brought with it an economic meltdown. The Fed has instituted several measures to counter the strain the economy has endured. Plans to release stimulus are before decision-makers now. This move may help relieve economic strain temporarily. However, it is likely to result in inflation. In such a case, investors might flock to Bitcoin to avoid losing their assets. If this happens, Bitcoin might become stronger, and investors’ margins will rise. In short, if the Fed releases stimulus, we could consider it our cue for buying Bitcoin.