In 2020, the global financial market was turbulent and the economic trend was unpredictable. However, Bitcoin shone with a unique light in this turmoil and was generally regarded as one of the best asset classes of the year. Bitcoin's performance is not only eye-catching, but also the focus of investors' heated discussions. This article will explore in depth why Bitcoin will still be the best asset class in 2020 and reveal its unique charm to you from multiple angles.

The popularity of Bitcoin has reached its peak in 2020. Against the backdrop of global economic turmoil, investors have begun to look for safer and more promising asset allocation methods. As a decentralized digital currency that is not controlled by the government, Bitcoin's uniqueness is fully demonstrated at this moment. Unlike the frequent fluctuations and increased policy risks in traditional financial markets, Bitcoin has become a safe haven for many investors with its fixed total amount and decentralization.

In addition, the scarcity of Bitcoin is also one of the important reasons why it is so popular. According to the design of Bitcoin, its total amount is limited to 21 million pieces. This scarcity gives Bitcoin a certain value preservation potential. Against the backdrop of global central banks printing money and increasing inflation risks, the scarcity of Bitcoin has attracted more and more capital inflows, further driving up its price.

With the continuous development of financial technology, the legitimacy and acceptability of Bitcoin are also gradually increasing. More and more institutional investors are beginning to get involved in the cryptocurrency market, and Bitcoin, as the digital asset with the largest market value and the highest liquidity, has naturally become their first choice. At the same time, some countries and regions are also actively exploring the possibility of issuing digital currencies, which undoubtedly brings new opportunities for the development of cryptocurrencies such as Bitcoin.

However, it is worth noting that as a high-risk asset, Bitcoin has large price fluctuations and investment needs to be cautious. Before investing in Bitcoin, investors should fully understand market risks, formulate reasonable investment strategies, and do a good job of risk management. At the same time, regulatory policies, technical risks and other factors also need to attract enough attention from investors. The future development direction of Bitcoin is still uncertain, and investors need to maintain a cautious and optimistic attitude and treat it rationally.

In summary, as one of the best asset classes in 2020, Bitcoin has demonstrated its unique investment value and development potential. Against the backdrop of increasing global economic uncertainty, Bitcoin's scarcity and decentralization are highly favored, making it an important choice for investors to allocate assets. However, investing in Bitcoin still requires caution, rational investment, and risk avoidance in order to share the benefits it brings. I hope you can find more investment opportunities in the world of Bitcoin and start a new journey of wealth growth.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Bitcoin burst onto the global stage in 2017, and the collective market surge made many early adopters millionaires (or billionaires) overnight. In the coronavirus-ravaged 2020, the price of Bitcoin is still up about 5% this year, but after a year of sharp fluctuations, Bitcoin is still down about 50% from its 2019 high.

(Source: Pixabay)

Now, as traders focus on the largest quantitative easing program in history and investors scramble to keep up with the fast-moving and uncertain situation, Bitcoin may outperform the market in 2020.

"Economists are dealing with three levels of uncertainty," Paul Donovan, chief economist at UBS, wrote in his daily update.

"Uncertainty about the coronavirus. Uncertainty about the policy response. Uncertainty about the economy's response to the virus and to the policy. Any change will change economic outcomes. ”

Donovan added that the latest consumer confidence survey report can be “just thrown away and not read.”

Amid all this uncertainty, Bitcoin’s roadmap remains unchanged as the highly anticipated Bitcoin halving event approaches.

Next month, the number of Bitcoins rewarded to miners who maintain the network will be halved for the third time, from 12.5 Bitcoins per block to 6.25.

By design, Bitcoin is halved approximately every four years until the network has produced a maximum supply of 21 million Bitcoins—which is not expected to happen until roughly the next century.

“Bitcoin has been the best performing asset over the last year and even over the last decade. With so much money being pumped into the system right now and the halving coming up, I don’t see any reason why Bitcoin won’t continue to outperform. ” said Mati Greenspan, founder of financial advisory agency Quantum
Economics.

A survey of major Bitcoin investors showed that most people were optimistic at the beginning of the year and expected the price of Bitcoin to soar to more than $20,000 per Bitcoin in 2020.

“The current unexpected global crisis and a series of major events in Bitcoin over the next nine months are causing speculation across the industry that another bull run is coming, and I believe we can only expect the price of Bitcoin to continue to rise in the future.

“Everything may point to $20,000 or even higher at the moment,” said Danny Scott, CEO of Bitcoin and CoinCorner based in the Isle of Man.

As the Bitcoin industry prepares for a supply reduction shock, central banks and governments are speeding up the printing presses.

U.S. President Donald Trump has signed a fourth coronavirus relief package, which will provide a total of $480.4 million in aid to small businesses and healthcare systems.

Stocks on Wall Street climbed, recouping a week’s losses after Trump signed the latest economic stimulus package.

“With the stock market having ended a decade-long bull run, fixed income under pressure, and we’ve seen prices of many major commodities tumble, we expect to see steady growth in the price of Bitcoin through the end of the year as quantitative easing enters the market,” said Marcus Swanepoel, CEO of London-based bitcoin and cryptocurrency exchange Luno. 

“Bitcoin has outperformed most other major asset classes over the past five years, so there’s a good chance that trend will continue, especially with the increased fragility of the existing financial system we’ve seen over the past few months.” 

Meanwhile, lawmakers are expected to take bigger steps this month to comply with the CARES Act, which has sent hundreds of thousands of Americans checks of around $1,200, some of which have gone into Bitcoin, according to Brian Armstrong, CEO of Coinbase, one of the largest U.S. exchanges. Coinbase, the U.S. arm of the world’s largest bitcoin and cryptocurrency exchange, reported an 82% increase in daily users over the past month. 

“The influx of new users could mean that [Americans] are looking for more cost-effective ways to get into Bitcoin or get out of crypto,” said Catherine Coley, CEO of Binance US, adding that demand for Bitcoin could be outstripping supply. 

Over the past 12 months, bitcoin prices have risen nearly 40% from $5,500 to $8,500 as plans by tech companies for crypto and digital financial services push central banks toward digital currencies.

Some believe bitcoin could solidify its status as a so-called safe haven asset due to the coronavirus pandemic, with investors buying both gold and bitcoin in times of uncertainty.

"If quantitative easing leads to higher inflation, we may see bitcoin increasingly used as a hedge against global instability, which would have a significant positive impact on its performance," said Gavin Smith, CEO of Panxora Group, a consortium of cryptocurrency businesses.

"However, bitcoin is far from a magical cash cow - there will certainly be volatility, so while prices may be on the rise, investors should proceed with caution."