During the second week of March, searches for ‘Buy Bitcoin’ reached levels not seen since July 2019. This surge in search volume can be mostly attributed to:
The increased uncertainty from Coronavirus
The rapid drop in Bitcoin price
The stimulus measures being introduced by the Fed
But this surge of interest is unique. It has held strong over the last six weeks, unlike the 2 week spike in Bitcoin search volume that was seen during Bitcoin’s run up to $13,000 in July 2019. And even more impressive, interest in Bitcoin is still growing.
Why? For starters, the uncertainty around the global economy still exists, and the stimulus measures from the Fed are still being rolled out. Those two factors are going to be on the minds of investors everywhere for a long time.
But beyond those two factors, the upcoming Bitcoin halving is also driving interest according to Google. Searches for “bitcoin halving” have already surpassed 2016 levels, with still another 14 days to go until the Bitcoin halving occurs. This general awareness of Bitcoin’s upcoming halving is likely spurring on additional demand for the currency too. At least in the short-term.
Will this surge of interest in the Bitcoin halving last? Probably not. If 2016 is any indication, the interest in the Bitcoin halving will be short-lived as speculative buyers looking to make a quick buck come and go.
But education around Bitcoin’s halving could help solidify Bitcoin’s long-term value proposition, and get people to think of Bitcoin as more than just a speculative instrument. Surging interest in the narrative of ‘Bitcoin as a hard asset’ could give people an alternative method of exiting their dependence on the fiat financial system, without needing a vault to store gold bars.
As the release schedule of new Bitcoin drops from 12.5 to just 6.25 new Bitcoin per block, Bitcoin’s place among the hardest financial assets in existence will be solidified. At the exact same time that people’s trust in the fiat financial system is most vulnerable.
Just like Americans have been increasing their gun purchasing lately to exit their dependence on police, and they’ve been hoarding food to exit their dependence on supply chains, we may be seeing a wave of Americans who are buying Bitcoin as a way to exit America’s fiat financial system.