|

Coronavirus Update: Tim Draper says COVID-19 pandemic favors Bitcoin

  • The trend of printing money to cushion economies from the impact of COVID-19 would result in less valued fiat money.
  • Bitcoin features such as maximum supply and the open-source network would soon be viable solutions to facing global pandemics.

The global economy has almost been brought to its knees following the COVID-19 breakout. Stock markets in the United States, Europe and Asia suffered a major crash in March as fear mounted across the world because of the virus. Due to lockdowns and restricted movements, the business continues to suffer. At the moment, an injection of $7 trillion is needed for recovery of the global economy. What’s worse is that this figure keeps rolling upwards by the day.

Bitcoin evangelist Tim Draper is among the people who believe that the pandemic and the crash of the global economy are key factors that would shape Bitcoin network innovations and mainstream adoption. As central banks keep on printing money for the said ‘economic stimulus,’ the produced bills would continue to decrease in value. However, Bitcoin offers a maximum supply, frictionless and open-source features that are viable alternatives to fiat money with less value.

This is going to be a really interesting time where people say ‘well, why don’t I just use Bitcoin?’ I know there are only 21 million of them and we don’t have to worry about whether a government is diluting their currency by printing tons of it, we can instead just use a currency we all agree on and it’s all a part of the economy and it’s already frictionless and open and transparent and global.

At the time of writing, Bitcoin is trading $7,361. It has accrued 2.19% in gains on the day after opening the session at $7,201. More upside action could see Bitcoin bulls establish support at $7,400 while maintaining the focus on $8,000.

Also read: Ripple Price Analysis: XRP/USD breakout above $0.20 short-lived, will $0.19 support hold?

Author

John Isige

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

More from John Isige
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

AAVE slips below $186 as bearish signals outweigh the SEC investigation closure

Aave (AAVE) price continues its decline, trading below $186 at the time of writing on Wednesday after a rejection at the key resistance zone. Derivatives positioning and momentum indicators suggest that bearish forces still dominate in the near term.

Hyperliquid stabilizes amid plans to burn assistance fund

Hyperliquid (HYPE) stabilizes above $26 at press time on Wednesday after three straight days of losses. Hyperliquid Foundation has started a validator vote to reduce supply by burning the assistance fund, which holds over 37 million HYPE tokens.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple extend correction as bearish momentum builds

Bitcoin, Ethereum, and Ripple remain under pressure as the broader market continues its corrective phase into midweek. The weak price action of these top three cryptocurrencies by market capitalization suggests a deeper correction.

Ethereum Price Forecast: Active addresses plunge to May levels amid resumption in US selling pressure

Ethereum (ETH) weekly active addresses have plunged sharply in December, declining from 440K to 324K, levels last visited in May. The decline in active addresses has also pushed down the number of transactions on the network to July lows.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.