Central Bank stimulus will boost Bitcoin’s value proposition

With the world, including the Bitcoin industry, being ravaged by the coronavirus outbreak over the past few weeks, governments have been forced to react. Canada has announced a CAD$82 billion stimulus package, the European Central Bank upped its large-scale asset purchase operations, and Hong Kong pledged to send its citizens HK$10,000 each.

At a press conference on 24 March, White House economic advisor Larry Kudlow said the United States Government’s stimulus package will “come to roughly $6 trillion”. Reports indicate that $2 trillion of this sum (if passed) will be direct cash payments to businesses and individuals who are suffering under the stress of the coronavirus outbreak and that the rest of the $6 trillion (a remainder of $4 trillion) is for the Federal Reserve.

$6 trillion is the same as “enough money for $850 for each human being on Earth” or 900 million Bitcoin.

Although none of this stimulus will go directly towards Bitcoin, analysts believe that this money will only dramatically boost the value proposition of Bitcoin and other cryptocurrencies.

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