The Covid-19 pandemic has affected the U.S stock market adversely. Things have not only been dire for the economy but also for everyday Americans who breathed a sigh of relief when a $2 trillion stimulus package for them was passed by congress. The ailing economy is now the focus of congress, with a $7 trillion stimulus package being discussed.
Bitcoin enthusiast and advocate Tim Draper believes these Covid-19 times could mark a turning point for Bitcoin. The billionaire Bitcoin bull sees the pandemic as a trigger that will see Bitcoin and Smart contracts do very well. In an April 6 interview, Draper expressed his reservations about the government’s money printing bailout plan stating that it would take years before the money permeates the global economy.
“They are gonna be printing all this money to try to get the economy back after they’ve basically tanked it,” he said. “They are going to flood it with a bunch of money, and that money is going to be worth less, and less, and less.”
Draper believes that this devaluation of money will trigger an influx of investors into Bitcoin as they seek to hedge their funds.
“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.”
Though there is a debate about whether the pandemic will end or delay the pursuit for globalization, Draper believes governments will still seek to compete. Digital financial innovations like Bitcoin, smart contracts, and A.I will force administrations to seek digital low cost services that will provide better solutions according to him. He added that;
“It doesn’t matter whether you are from the U.S, China or Russia or India or Europe or whatever, we are an open world and then the geographic borders are going to mean less and less.”