Stock markets around the world are currently still facing significant losses in the wake of the developing coronavirus pandemic. However, well-known Bitcoin bull and investor Tim Draper believes the COVID-19 coronavirus pandemic could actually boost Bitcoin adoption.
Draper suggests COVID-19 measures could boost Bitcoin usage
This news came in an interview with Draper on April 6th. In the interview, Draper began by noting he was skeptical of the US government’s response to the pandemic. As we’ve previously covered, the US government and the Federal Reserve are desperate trying to support the US economy.
As such, the Federal Reserve is now essentially printing money to support the stock market, something known as ”QE Infinity”. Nevertheless, Draper suggests that this may prove to be ineffective, seeing as this money will have trouble stimulating the economy:
”They are gonna be printing all this money to try to get the economy back after they’ve basically tanked it. They are going to flood it with a bunch of money, and that money is going to be worth less, and less, and less.”
As such, Draper suggests that many people may turn towards Bitcoin instead. The premier crypto, like most cryptocurrencies, has a fixed supply – unlike the billions of fiat currencies central banks are now printing to help combat the ongoing pandemic.
”Why don’t we just use Bitcoin?”
Furthermore, Draper suggests that people may soon instead look towards Bitcoin as their currency of choice. Basic economic theories suggest that massively increasing the monetary supply goes on to devalue currencies. This is something that Draper suggests could soon be evident in real-life:
”This is going to be a really interesting time where people say ‘well, why don’t I just use Bitcoin?’ I know there are only 21 million of them and we don’t have to worry about whether a government is diluting [the] currency by printing tons of it, we can instead just use a currency we all agree on and it’s all a part of the economy and it’s already frictionless and open and transparent and global.”
As if this wasn’t enough to accelerate the advent of Bitcoin, Draper adds how it compliments our global society. Consequently, COVID-19 could inadvertently propel Bitcoin to become the first truly global currency:
“It doesn’t matter whether you are from the U.S, China or Russia or India or Europe or whatever, we are an open world and then the geographic borders are going to mean less and less.”
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.