Helicopter Money Might Send Bitcoin Nutsy – Trustnodes

Helicopter Money Might Send Bitcoin Nutsy

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Congress is in emergency mode to pass a massive $1 trillion stimulus package amid a spreading Chinese flu that was caught by two lawmakers.

The at risk group of lawmakers are in a sprint to get the package over the line as they want to get out of there as soon as possible with $500 billion to be given to every single American once this is approved in two trenches.

That has never been done as far as we are aware with it unclear what its effects will be, but you’d expect some of this money to go towards investments and maybe much of that investment part might go towards bitcoin specifically.

Why? Well in some places you can’t even buy physical gold because there is a total lockdown with shops closed save for supermarkets.

The jewelry industry therefore, which in part makes up the price of gold, might be badly hit, and obviously you don’t invest in assets that on balance might not do well.

Stocks are rekt, although timing the bottom might be very profitable but the stream of bad news in regards to how much sales have fallen isn’t even making the round yet as this has just begun.

While on the other hand the dollar is strengthening in part because money is literally being burned as no one is borrowing now:

Instead of getting dollars directly people across the globe might get bitcoin because their national money, like GBP, is kind of crashing.

So they can’t stay in their own cash, and they can’t easily get dollars, but they can get bitcoin which then kind of acts as a proxy because of its global nature.

Leading bitcoin to rise a bit today not least because some bank branches are apparently closing, while in Venezuela banks have been suspended.

The real fuel however might be this $500 billion. Just 1% of it is $5 billion of a real cash injection. That could send price to $25,000.

Fomo does its own thing so mericans might send another 1% of the big stimulus, perhaps for example to lock their children’s $1,000 into crypto or just because they want an alternative to fiat in case ATMs run out of cash or for whatever reason.

This is not a banking crisis so ATMs should be fine, but that’s in US and Europe. When those two cough, and currently they are coughing a lot, the rest down under get very very sick, so there may be monetary crisis in poor nations.

Meaning bitcoin might now be in a good position to rise after the shock of sell all the things as investors start looking at the picture with more clear eyes to try and predict how different assets might perform in the coming months.

Since people are staying at home you’d think digital things would do better than physical things, with companies usually being physical in regards to production or sales, and gold is physical too where retail investors are concerned with this being very much a stimulus for them this time, rather than banks.

So digital assets like bitcoin or eth might see more demand because they’re a real and usable hedge in this case from the fiat system which now is operating at 0% interest while the printing presses may go full steem.

And since physical gold maybe itself has the Chinese flu, you know cash does, in addition to social distancing making its physical exchange a bit more difficult, this might be the moment when bitcoin rises as the modern hedge and safe haven.

$50,000 by the end of the year is nutsy, and probably unlikely because we don’t really think it’s gone happen, but bitcoin was created for this very situation when you might need digital gold.

Copyrights Trustnodes.com

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