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COVID-19 pandemic has hit the largest banks in the world hard

covid-19 pandemic

COVID-19 pandemic is still raging out there. It has caused many companies to close and many people to lose their jobs. It has shown us that our current system is broken.

Let’s take a look at how the pandemic hit the largest banks hard.

Everyone is losing money

Everyone felt some kind of impact from the pandemic. Many people lost their jobs and some even lost their homes. Many companies had to shut down. Basically, if you ended up working from home, consider yourself lucky. But it wasn’t just people who lost money. Banks lost money as well.

Let’s take a look back to December, 2019. At that time, the market cap of Bitcoin was $130 billion. There were 6 banks that had capitalization higher than Bitcoin. After the pandemic hit the world, there are now only two banks with higher capitalization than Bitcoin: JPMorgan Chase and Bank of America. Bank of China is close, but still below Bitcoin’s market cap.

The interesting thing about this situation, is that while banks were losing money, Bitcoin gained 48% of the market cap at the same time ($62 billion). This just proves that Bitcoin was created for situations like this. People have started to believe in cryptocurrencies more and realized that banks and centralized systems are broken.

Help for adoption

Because of the pandemic, many investors started investing in cryptocurrencies and Bitcoin. They treated it like a safe haven before inflation. Which is true, if you want to protect your wealth, you need to let your money work and start investing. You don’t need to invest a large amount of money. Smaller amounts are fine, just invest regularly.

The pandemic has helped people to understand that we need another financial system. The system where banks are just printing an infinite amount of money can’t work indefinetly. We need a system we can trust.

Conclusion

Bitcoin can provide protection against inflation. Many people turned to Bitcoin during the pandemic because they were losing money. Don’t let this system consume you. Start investing and protect your wealth now. Just remember the golden rule: Invest only as much as you can afford to lose.

Source: cointelegraph.com

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