Investors start spending their stimulus money to purchase BTC and they will do the same with the second round of government funding as well. BTC suffered a strong blow during Black Thursday alongside the rest of the financial world but the top cryptocurrency managed to grow since then and become the best performing asset of 2020 so let’s read about it some more in today’s bitcoin news.
2020 was quite an interesting year to say at least and it seems that Satoshi Nakamoto predicted a scenario of this kind and it is why Bitcoin was created in the first place. BTC was designed to be both decentralized and non-sovereign so by separating the money from the state, citizens are freed from the control of fiat currencies that offer governments through central banking.
The strong need for a way out was not clear until recently when the money supply shifted out of control which led the central banks to seek and to give the economy a money injection. To hide the fact that the government is printing more money, citizens will have to pay taxes in one way or another since the politicians snuck in a $600 direct payment to the American taxpayers. However, the more money the government prints, the faster the inflation will spur out of control and the initial $1200 stimulus money will look like a loan that is handed out to the taxpayers that they will have to pay back until the rest of their lives.
This is one major reason why Investors start spending their stimulus money on buying Bitcoin as they are fed up with government-caused inflation and taxation. Investing in Bitcoin this year was a no brainer as the cryptocurrency got wildly accepted and entered a new parabolic phase and bull market which seems only as a start. Turning the $1200 check money into $4200 by investing in BTC is appealing and another $600 invested in BTC could be even more profitable. Beyond the returns on the stimulus money which makes sense given the fact that it will bring up more inflation for the years to come, there are more reasons to put fiat into crypto.
The new stimulus money is just proof of how poorly the US government is handling monetary policies and the only way to get out of it is to buy Bitcoin. So while the government gives out money that you will most likely repay for the rest of the life, it’s smart to invest them into something that will grow bigger.
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