The Bitcoin bulls spike today and even though BTC did not add much in its value, we can see that there is a positive sentiment triggered by one US politician and his recent proposal. It is Bloomberg’s Joe Weisenthal that is now stealing the show in the cryptonews, with his “Automatic BOOST to Communities Act” published by the Congresswoman Rashida Tlaib of Michigan.
So, what is this all about?
Well, it seems like all US politicians have responded to the coronavirus outbreak by proposing stimulus. However, Tlaib was a bit more extreme. The program which she proposed included a temporary Universal Basic income, mainly to get the US Mint to issue “two $1 trillion platinum coins” which the Federal Reserve would purchase, crediting $2 trillion to the Mint.
Although some people deemed this measure as necessary in order to ensure the economy does not crumble further, many in the Bitcoin space laughed and argued that this news only proves the absurdity of fiat economics.
Bitcoin bulls spike today as a reaction of this. The Bitcoin news now show that the cryptocurrency is stable. One tweet by the President of the Nakamoto Institute, Michael Goldstein, also raised a lot of eyebrows after he jokingly remarked in response to the news and said “don’t worry, you will be able to buy a fraction of a Bitcoin with a $1 trillion coin.”
Don't worry, you will be able to buy a fraction of a Bitcoin with a $1 trillion coin. https://t.co/OBD4RvkkST
— Michael Goldstein (@bitstein) March 21, 2020
Others in the cryptocurrency space also echoed this and wrote about how the incessant printing of money by authorities will only cause inflation, proving the value of Bitcoin which is algorithmically limited to a supply of 21 million coins.
And even if this plan does not become reality, the US government and Federal Reserve have a backup – they recently announced dramatic stimulus measures in the US crypto regulation news, which will prove Bitcoin’s value as a disinflationary asset.
In a report published on Tuesday, the BitMEX research team spoke about the matter of fiscal and monetary stimulus in the macro environment. They wrote:
“In our view, in this changed economic regime, where the economy and financial markets are set loose, with no significant anchor at all, not even inflation targeting, it could be the biggest opportunity Bitcoin has seen, in its short lifetime.”
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