U.S. government spending can lead to rising prices for Bitcoin (BTC), according to Gemini crypto cofounder and CEO Tyler Winklevoss.
„The Federal Reserve continues to set the stage for Bitcoin’s next upward trend,“ Winklevoss said in a July 22 tweet, which included a link to the article on the government agency’s discussions of increased stimulus spending.
The argument for Bitcoin coverage gets stronger over time, according to Anthony Pompliano
Bitcoin holds up against inflation
As a decentralized, borderless digital asset beyond government control, Bitcoin remains a potential hedge for the major markets and national dollars, a point often emphasized by several cryptomoney industry participants.
Bitcoin has a maximum supply of 21 million coins, protecting the asset against value dilution. „When the printer starts working and inflates the stock market, it’s time for Bitcoin,“ Winkelvoss said in a July 18 tweet, referring to the printing of U.S. money.
Bitcoin price rises by inches to $6,700 in a $2 billion stimulus deal
The U.S. government dilutes the USD
Since March, the US government has strengthened its monetary activity, trying to shore up an economy in difficulty, as a result of COVID-19 prevention measures. These efforts have included a USD 2 trillion stimulus package, which, in part, essentially distributed free money to US citizens, depending on income levels.
Pompliano says that getting out of cash is key to wealth and inflation protection
With the current stimulus money coming to an end, the government should assess the situation, possibly issuing more relief capital, as Morgan Creek Digital co-founder Anthony Pompliano said in a recent live broadcast from YouTube. The financial expert cited U.S. dollar inflation over the past few decades, noting the importance of putting cash into various assets, including Bitcoin.