Bitcoin gains the “support” of the President of the United States, Donald Trump, after he said ironically that he supported the manipulation of the dollar.
Our money, our currency
At a press conference, President Donald Trump defended the Federal Reserve by printing more than $ 6 trillion.
This week, Trump signs a COVID-19-induced $ 2.2 trillion emergency stimulus package. This massive bailout agreement is designed to help Americans and businesses cope with the economic shutdown caused by the pandemic.
The dollar has taken a beating, falling nearly 4% this week, the biggest weekly loss since the global financial crisis.
Is Trump destroying the dollar?
Between the massive bailout project and the Federal Reserve (FED) potential risks include runaway inflation, the displacement of the dollar as a global financing currency and the complete destabilization of the United States’ financial system.
In recent weeks, the FED has injected more than $ 1 trillion into the system, due to the demand for liquidity worldwide. However, Caitlin Long, a veteran of Wall Street comments that “In the short term, the demand for dollars is huge because the coverage is short, but it will not last.”
The Trump administration seeks to secure aid to small businesses, workers, and relief to struggling industries from COVID-19. However, many people have voiced their concerns, how much will this stimulus really help them?
Fiat money vs Bitcoin
Critics of the stimulus measures warned of the potential for inflation to occur, many of the members of the Bitcoin community urge people to explore digital assets.
“Fiat money is becoming more abundant, and Bitcoin is becoming scarce,” said Anthony Pompliano, an advocate for the crypto fund Morgan Creek Digital.
According to Donald Trump’s statements last Friday, Bitcoin gains support, in the face of the massive impression of the dollar. The President also expects the country to reopen trade in mid-April.
However, critics report that despite the country opening up again, the economic scenario will be very different.
In this sense, Caitlin Long, comments that the balance of the FED is expected to reach 10 bn. In dollars, before the COVID-19 crisis ends and the gradual collapse of the US dollar is expected.