The United States has begun distributing bailouts to citizens, to cushion effects of the coronavirus pandemic. While many have received the earmarked $1,200, a crypto exec has remarked that people who did not receive the stimulus package will realize Bitcoin’s benefits and then buy-in.
In a recent tweet, VanEck digital asset director Gabor Gurbacs has said that this category of people will see the problem with fiat, and find a way into the Bitcoin market.
“Those that didn’t get stimulus checks or corporate bailouts are the most likely to buy Bitcoin for what it is: A scarce, non-sovereign-issued, trust-minimized, hard asset. The most influential group of new adopters since the early days of Bitcoin is just entering the arena.”
In another tweet, in response to a user agreeing with his thoughts, he described the efforts like the stimulus package as “helicopter-money programs.” According to him, the money being shared by these programs is gotten from other people’s hard work. Gurbacs says that the decision to re-distribute others’ efforts seems to discount their hard work by re-allocating it to others.
While the reason for the stimulus package is evident, many have pointed out problems with the Federal Reserve’s decision to also inject trillions into the economy. According to dissidents, the Fed has basically gone on a printing spree, creating money out of nowhere and pumping the money into the economy. This saves citizens’ livelihood and also the financial markets. However, as noble as it might be, it’s impossible to do this with Bitcoin.
Last week, Coinbase CEO Brian Armstrong tweeted an interesting image. The image showed that the number of crypto deposits worth exactly $1,200 has spiked almost four times over. This suggests that some of the people who received the package are pumping all of it into crypto. While the image doesn’t say the data represents Coinbase’s records, it is assumed so because Armstrong is the CEO.
The price of Bitcoin struggled a little and plunged below $7,000. When this happened, many suggested it was sparked by the crash in the oil market, as the West Texas Intermediate (WTI) – the North American oil benchmark – crashed below $0.
Bitcoin has however picked up and is currently trading at $7,126, after climbing almost 4% over the last 24 hours.
