Covid’s domino effect in the economic downturn continues, but this time things seem greener for the crypto community. The major crash in oil prices on April 20th — going into negative levels — has been a major catalyst in the current economic downturn resulting in investors to start considering the crypto markets.

In reality, the fall in the oil future prices truly exemplifies what can happen to an asset, oil, whose demand is based on consumption, which in turn is influenced by other external factors.

Bitcoin, on the other hand, is not centralized, and there is a known fixed supply. Besides, its utility doesn’t depend on consumption, which has led many investors to turn to the king crypto.

Reacting to the recent crash of oil and how it may lead to BTC’s bustling performance, Crypto evangelist Bob Burnett commented:

“The recent oil price crash exemplifies what can happen when something used as a store of value relies on either consumption of that good or the fashionability of that good as a major basis of its value. Art, wine, gold, silver, and #oil shares this characteristic. Not Bitcoin”

Contracts for Difference (CFD) could allow crypto traders to speculate on the price of oil without actually owning the commodity. In this strategy, Bitcoin holders could trade CFD via an online broker such as eToro and make a profit speculating on the future prices of oil.

Crashing Oil Prices Could Be Good For Bitcoin’s Price

The recent crash in oil prices highlights the rationality for a Bitcoin Exchange-traded Fund (ETF), which would be based on a digital commodity that runs on a global network accessible to all.

Most of the leading crypto exchanges have state-of-the-art market surveillance, and advances in market liquidity should permit the ETF price to strictly track the market value of the underlying digital asset, giving traders comforting clarity and transparency. The same cannot be said for oil, which has lock-in periods during which investors cannot sell.

Financial experts project the SEC could be forced to reconsider their reluctance to approve Bitcoin ETFs, which is a liquid and easily redeemable investment vehicle suitable for all types of investors.

In further good news for the crypto sphere, increasing attention is being given to enterprise applications of blockchain and crypto, including self-sovereign identity (SSI) technology, to curb the spread of Covid-19.

BTC Standing Its Ground As Preferred Store Of Value

Some well-known crypto analysts are pointing out the oil markets, suggesting that Bitcoin might be a much stronger store of value than most of the actual commodities like oil and gold.

For instance, Erik Voorhees, who have a clear understanding of the crypto market, still holds a rather optimistic opinion. In a twitter post, Erik, who is the CEO of the crypto exchange ShapeShift sought to dispel the notion that Bitcoin had failed as a store of value after the March 13th crash.

That said, Bitcoin could be affected just like oil by the Coronavirus crisis, but it is easy to foresee a future where Bitcoin is considered as a mainstream commodity, more stable than oil, and more useful than fiat money itself.