People continue to turn to Bitcoin and other cryptocurrencies to boost their profits even amid a pandemic.
As the COVID-19 pandemic pushed the US economy into recession and deepening unemployment, more and more Americans see the benefits of trading and mining Bitcoin as an alternative source of income.
Many Americans, particularly young people, are interested in cryptocurrencies. Wael al-Nahhas, an economist and financial advisor to several investment institutions, said: “Many started investing in small amounts despite the increase in the value of the bitcoin. They started mining Satoshi, which is 100 millionth of a bitcoin, and on a daily basis they are making profits of 4% to 5% from the difference between buying rates during the timing of demand decline and selling rates at the time of peak demand, besides some quarterly or yearly profits from unexpected hikes in bitcoin rates.”
Unemployment in the US jumped from 3.8% during the first quarter of 2020 to 13% during the second quarter, meaning more than 14 million Americans have lost their jobs, recent numbers from the Pew Research Center said.
Bitcoin trading then looks very attractive. Muhammad Abd el-Baseer, a Bitcoin miner, said other factors also made it easier for people to turn towards Bitcoin. He said the move to work from home, reducing working hours, and new curfews encouraged many to invest in Bitcoin in their spare time.
The largest Bitcoin ownership survey reveals 6.2% of Americans own Bitcoin, while 7.3% are planning to buy some. However, this number could be higher as people may teach their friends and family how to invest in cryptocurrencies.
But while more Americans become interested in mining and trading cryptocurrencies, many are concerned that people could be targeted and accused of fraud without proper legislation. A law clarifying what activities can be considered legal or not around cryptocurrencies could come soon, according to experts.