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How bitcoin can thrive during times of economic turmoil

How bitcoin can thrive during times of economic turmoil
  • Due to the situation going on with COVID-19, regulators all over the world have committed an unprecedented amount of money to fight off the potential recession.
  • In the United States, an approved $2 trillion stimulus package was approved by the Senate and the House of Representatives has now accepted the proposal for another $3 trillion.

Due to the situation going on with COVID-19 spreading throughout the world and impact on the economy in massive waves, regulators and policymakers all over the world have committed an unprecedented amount of fresh money in a bid to fight off the potential recession. In the United States, an approved $2 trillion stimulus package was approved by the Senate at the end of March and the House of Representatives has now accepted the proposal from the house of Democrats for another $3 trillion. This extra money was meant to ease the needs of Americans you’re facing employment as the rate rises to 15% due to COVID-19.

The federal reserve has responded to the crisis at hand and has undertaken a wave of quantitative easing unparalleled in its history.

Looking into the crypto space though, do United States bailout money is expected to go towards helping public companies and preventing shareholders from losing their value. However, as a result of this, the new money is expected to inflate the cost of assets and since many citizens in America don’t own assets, the only result will be that they will experience a weakening in their purchasing power. This is where bitcoin comes into the picture as the CEO of LiquidApps, Beni Hakak has said that the leading cryptocurrency could establish itself as a store of value during a time of crisis. He further said:

"The COVID financial crisis is the first crisis that Bitcoin is experiencing as an asset class, and while some expected it to perform similar to gold, it led to a sharp decline in Bitcoin's price. As the world economy has started to open up, Bitcoin has recovered quite nicely, outperforming the S&P since their respective lows. With the Bitcoin halving behind us, an event that has historically been followed by a bull run, it will be interesting to see if Bitcoin can gain acceptance as a hedge against inflation and a store of value.”

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