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Will Bitcoin grow stronger with second round of stimulus checks?

Will Bitcoin grow stronger with second round of stimulus checks

The House Democrats on Tuesday proposed another round of stimulus checks, with the newly proposed bill set to cost over $3 trillion, making the United States’ coronavirus economic bailout the biggest-ever emergency spending by a country.  

With more than 30 million Americans losing perhaps their only means of livelihood and most silicon valley and wall street companies reporting suicidal drops in their second-quarter earnings, the US government is possibly doing everything in its capacity to soften the blow of the coronavirus pandemic on its economy.

Americans prepare for another round of stimulus checks

Proposed on Tuesday, another round of stimulus checks are aimed at aiding state and local government entities with $1 trillion in relief, an additional $1200 relief grant for every American, and close to $200 billion for essential services workers who are battling the disease on the frontline.

Mainly, the $3 trillion proposed relief aims to offer some financial aid to the lockdown-enforced Americans who, despite months of battling this disease, are still struggling to flatten the infection curve. 

And amid these unprecedented measures taken by several central governments around the world, who are busy trillions of dollars worth stimulus checks, Bitcoin appears to be the biggest gainer.

Is Bitcoin the biggest gainer?

As the many industry experts proclaim, amid the printing of these massive chunks of stimulus checks, the intrinsic value of Bitcoin and other decentralized cryptocurrencies is witnessing a significant surge.

Not to mention, renowned hedge fund investors like Paul Tudor Jones are also turning to Bitcoin and stating that it is, in fact, the ultimate winner in this overblown inflation resulting from uncertain monetary policies and drastic measures taken by the US government.

Do stimulus checks and crypto surge go hand in hand?

Backing his statement was Antoni Trenchev, co-founder of crypto banking account Nexo Bank, who told Bloomberg earlier this week that the vast influx of stimulus checks, coupled with the hype surrounding the Bitcoin halving, are almost creating the perfect storm for the Bitcoin price surge. 

Also, affirmed by market researcher Delphi Digital, a fiscal relief of this magnitude will trigger global inflation and drive people towards deflationary currencies like Bitcoin, with some of the strongest currencies ultimately losing their purchasing power.

It is important to note here that the distribution of the initial round of stimulus checks amongst Americans reportedly sparked the Bitcoin buying frenzy, followed by impressive gains of at least 35 percent within the following two weeks. 

Lastly, following the President Trump’s controversial tweet that the US could benefit from negative interest rates, like other countries, Bitcoin and gold are certainly coming off as highly lucrative investments for investors who are perhaps looking for more profitable returns with their stimulus checks.

Manasee Joshi

Manasee Joshi

An avid reader and an enthusiastic writer, Manasee recently chose to dedicate her time doing freelance writing. A degree in English literature and experiences in Administration, HR, finance, literature, creativity and innovation tucked under her belt, she crafts engaging and compelling content for crypto and blockchain audience.

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