The world’s most popular cryptocurrency bitcoin is touted by its fans as a good alternative to gold and climbed by over 27 percent in the same period.The international central banks, which are generally very skeptical of cyber currencies, have contributed to this.
Because in order to dampen the economic effects of the Corona crisis, the monetary authorities around the world have decided to cut interest rates, billion-dollar bond purchase programs and other instruments to support the economy. But this enormously relaxed monetary policy also brings with it risks for inflation and national debt.
Bitcoin is therefore becoming more attractive for investors whose trust in the state financial system has been shaken as a result.Bitcoin was designed as a decentralized, state-independent and non-inflationary means of payment. In order to prevent a loss of value due to inflation, Bitcoin inventor Satoshi Nakamoto already specified when programming the digital currency that the number of Bitcoins in circulation would grow at an ever slower rate (halving) until the specified upper limit of 21 million coins is reached.