The 2020 stock market crash was triggered by the coronavirus pandemic that has affected two of the biggest economies in the world, the US and China, the most. Now that the number of infections and deaths is rising in the US, Bitcoin’s status must be tested too.
Tim Draper talks Bitcoin
The US economy may need as much as $7 trillion+ in bailouts to continue sustaining. Longtime Bitcoin bull Tim Draper said that this could give cryptocurrencies and other emerging technologies a chance to flourish. He talked specifically about Bitcoin and smart contracts. In an April 6 interview, he said that the infinite ability of the government to print money doesn’t convince him fully. He added that it would take years for this money to permeate the global economy.
Draper said, “They are gonna be printing all this money to try to get the economy back after they’ve basically tanked it. They are going to flood it with a bunch of money, and that money is going to be worth less, and less, and less.”
He was hopeful that people would move towards Bitcoin because of its fixed supply which is in striking contrast with the fiat money that central banks are printing. He said that there are only 21 million Bitcoins in the world and the users don’t have to worry about the government printing more and diluting the value of their currency. Instead of this, they can simply use a frictionless, global and transparent option for the world.
Could globalization come to an end?
The coronavirus pandemic has started making people question if the past 25 years of globalization would come to an end. Draper thinks that Bitcoin, artificial intelligence and smart contracts could lead to a new digital financial innovation where governments will be forced to compete with one another virtually. They will have to ensure that they bring better services to users at a lower cost. He even went on to say that people will be empowered because of this and we will have a “nicer” and “loving” world.
He said that geographic borders will soon start becoming less important and we will live in a more open and freer world.