2020 may be one of the key years for Bitcoin and its development. As a result of the pandemic, which paralyzed the whole world and claimed many lives, the economy and the financial sector have stalled, so to speak, and the real impact of Covid-19 is still awaited. From the point of view of the financial markets, the first half of the year undoubtedly looks like one of the worst ever, as we have experienced the biggest downturns since the economic crisis and we have also witnessed events such as negative oil prices – such a thing has never happened.

In 2020, central banks around the world pumped enormous amounts of money to the economy through various incentives, checks and stock purchases (especially by the US Federal Reserve) to boost the economy and prevent a possible crisis. In the United States alone, initial support of $ 2.3 trillion ($ 2,300,000,000,000) was approved and this amount is certainly not yet final. Precisely here you can see, how the year 2020 helps the Bitcoin.

While central banks around the world print more and more money every day, Bitcoin still has a limited number of coins in circulation. Unlike most FIAT currencies, which will soon be at risk of inflation and, in the worst case, hyperinflation, Bitcoin is deflationary due to its limited and predetermined number.

In addition, experts state that it is this difference between FIAT currencies and Bitcoin that can cause the transfer of capital to cryptocurrencies. One of the employees of the Coinbase cryptocurrency exchange, Max Bronstein, commented on this topic as follows:

"The world's monetary system is very fragile, not only because of the strength of the dollar but also because of the growing indebtedness against the largest FIAT currency. It can thus be assumed that a wave of volatility will soon enter the currency markets. "

According to Bronstein, the main reason for the volatility is the rising debt which will, among other things, cause an inflow of funds into cryptocurrencies. Volatility in monetary financial markets (FOREX) has even fallen to its lowest level in 6 years, suggesting that the chances of extreme price fluctuations in these markets are relatively high. This report could also help Bitcoin benefit from the current situation in the markets.