The major reason why the economy took a down-plunge was as a result of the COVID-19 pandemic, the move to stock up on Bitcoin as a hedge against the imminent economic crash now seems to be a smart step.
Bitcoin advocate Tyler Winklevoss has weighed in on the speech of the Federal Reserve Chairman Jerome Powell in which he called for more stimulus to be finalized by US lawmakers in order to aid the ongoing economic recovery.
‘The current economic downturn is the most severe in our lifetime. It will take a while to get back to the levels of economic activity and employment that prevailed at the beginning of this year,’ Fed Chair Jerome Powell said https://t.co/rBjzGUT5Oh pic.twitter.com/H9bkmIKwaj
— Reuters (@Reuters) November 6, 2020
The Federal Reserve Chairman also noted that “The current economic downturn is the most severe in our lifetime. It will take a while to get back to the levels of economic activity and employment that prevailed at the beginning of this year.” He however believes that the more stimulus checks are in the hands of those who truly needed it, the better the economy would be revamped as trading activities through e-commerce will shoot up.
Tyler Winklevoss has been quite critical of the Federal Reserve’s policy. The roll-out of more stimulus checks involves the printing of more money and the printing of more money will undoubtedly drive inflation which will eventually reduce the purchasing power of the United States dollar.
“This is code for buy Bitcoin,” Tyler Winklevoss tweeted, to complement his series of previous advocacy for Bitcoin amid dwindling economic instability. The case Tyler made advocating the purchase of Bitcoin is also backed up seeing the Federal Reserve’s Balance Sheet last updated last Friday, October 30th. With a balance of $7.14 trillion, and a record-breaking National Debt Figure at its all-time high of $27.2 Trillion, the economy is expected to see more strains in the days ahead.
The major reason why the economy took a down-plunge was as a result of the COVID-19 pandemic and with increasing cases of the viral disease being recorded in the United States, the move to stock up on Bitcoin as a hedge against the imminent economic crash now appears as a smart step.
Tyler Winklevoss Advocacy Yielding, Institutions Now Stocking Up on Bitcoin
Tyler Winklevoss has taken up the role of Bitcoin advocate and from the recent stock-up of Bitcoin by Institutional investors, it seems his advocacy is yielding fruits. Amongst the top firms who have invested in Bitcoin (BTC) include MicroStrategy Incorporated (NASDAQ: MSTR) who bought as much as 21,454 BTC and Square Inc (NYSE: SQ) that invested about $50 million in Bitcoin as it claimed investment aligned with the company’s purpose.
The investments in Bitcoin by these firms are already yielding dividends owing to the fact that the price of Bitcoin is currently on a bullish run that has made it record its highest high above $15,000 since January 2018. While this position is good news, it still has a long way to go to beat the $500,000 benchmark Tyler Winklevoss believes the coin will trade at if the current economic conditions persist.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.