Despite the fact that the Bitcoin price was hit hard at the beginning of the measures about the COVID-19 pandemic, the price recovery is going on at a steady pace. Of course, Bitcoin is heading to the halving, its big event that happens once in 4 years, but this time it coincides with $1,200 stimulus checks given to Americans. The helicopter money is being given in response to the economic crisis caused by the lockdown of the economy.
Sharp movements in Bitcoin price have been the always best marketing bitcoin gets. This is why many crypto exchanges reported a surge in inactivity when the price dropped sharply in March. Add to that the halving event which takes place in less than 2 weeks. Now, to add more fuel to the fire came the stimulus packages.
While many remember the legendary cryptocurrency bull run of 2017, and if people invested their $400 stimulus checks they got in 2009 in bitcoin now that money would be worth millions of dollars. Now, this is the perfect storm for bitcoin, stimulus paychecks again, and at the same time the halving. This is the third halving and the past two tomes everybody knows what happened. Now the question is if the history will repeat itself.
Many users on the bitcoin subreddit claim that they are using the $1,200 check to buy more cryptocurrency. But more than talk, there are data shown by exchanges that stimulus check are flowing into cryptocurrencies.
Brian Armstrong, Coinbase CEO shared on Twitter a graph that shows an increase of activity of exactly $1,200 deposits immediately after the release of the stimulus checks. This suggests that crypto portfolios that received their stimulus paycheck from the CARES Act are spending ti in cryptocurrency.
— Brian Armstrong (@brian_armstrong) April 16, 2020
It is ironic that inflationary cash is going to flow into bitcoin, a cryptocurrency created to change the traditional monetary policy, where elites print money at will.
The purchasing of Bitcoin directly with the stimulus money could be seen as a protest against the Fiat-based financial system. This based on the idea that the debt-based spending will eventually make fiat currencies worthless and the only way to escape the fiat system is to invest in hard assets like Real estate, gold and bitcoin which is in the ned in more liquid than the past 2 class assets.
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