The United States government plans to inject a $1.8 trillion stimulus package into the American economy which could lead to a wide bitcoin adoption.
Tyler Winklevoss, one of the founders of the Gemini crypto exchange, believes this plan proves why the leading digital cryptocurrency, Bitcoin, would be accepted and adopted by the public.
This current proposal beats the earlier proposed $1.6 trillion with the President urging negotiators on both sides to “Go big!”
What is a stimulus package?
A stimulus package is a set of measures put in place by the government of a country in an attempt to revive its dying economy. Usually, countries inject a stimulus package into their economy so as to help “restart” the economy, increase the spending power of the people and protect jobs from being lost.
Many countries are proposing a stimulus package for their economy due to the effect of the pandemic, however, in the long term, such stimulus tends to create the possibility of hyperinflation which leads to a significant drop in the value of the currency.
How would this aid bitcoin adoption?
Tyler Winklevoss believes that the ability of the Federal Bank to be able to print new money out of nothing proves the validity of Bitcoin. He argues that since there can only be 21 million Bitcoin in existence, and the Federal Government can print as many dollars as they want, then the value of Bitcoin holds more than the dollar. This, further said should propel more people into bitcoin adoption as an acceptable means of financial payment and transactions
In one of his previous tweets, Tyler had opined that BTC would be as strong as ever after the pandemic, and with many other believing that the dollar has lost it strong allure. This definitely wouldn lead to a wide bitcoin adoption and acceptance by the general public.
Many experts have wondered if the dollar would not be affected by the history making stimulus package being proposed by the government.