The 2020 Bitcoin halving has come in the time of a great health crisis, which, at the same time has caused a worldwide economic depression. The talks of cryptocurrencies opening the way in a post-coronavirus world are still going about and have further gained momentum with the halving event. It is expected that it would greatly contribute to increasing the value of Bitcoin. Meanwhile, a new report released by Delphi Digital on 11 May, titled “The State of Bitcoin”, is leading to the predictions that Brazil can be the future demand heaven for Bitcoin.
Physical Currency is Losing its Value
The report highlighted that Brazil’s central bank has lowered its interest rates by 3%, thereby losing its value by 30% relative to the US dollar. It means that new investors would prefer to invest in cryptocurrencies like Bitcoin. In comparison with Brazil’s currency, Real, Bitcoin is doing rather well and can prove to be the solution to the country’s financial distress. Bitcoin’s best YRD performance, compared to Real is 74%, which is almost four times that of the US dollar, coming at 21.9%.
Bitcoin Could be the New Preference
Delphi Digital foresees that investors who “find the risk-reward tradeoff no longer attractive” in the Brazilian market could be attracted towards adopting Bitcoin. However, the report noted that this exodus from traditional business does not mean that all the capital would get deposited from there to Bitcoin. Rather, the size of this move would create a demand source for Bitcoin, “especially if tighter capital controls become more commonplace.” Earlier this week, it was reported that a heist of $5 million— on its way in Brazil— which targeted the Spanish multinational institution, Banco Santander, was successfully thwarted using local over the counter crypto exchanges (OTC).