The United States government is looking to inject $1.8 trillion into the economy via a coronavirus stimulus package that would bail out companies deemed essential to national security.
While many hardcore crypto supporters believe that massive rescue packages will undermine faith in the financial system and ultimately trigger the next Bitcoin bull market, Yoni Assia, founder and chief executive of social trading and investment platform eToro, is suggesting a different catalyst.
In a new interview with BlockTV, Assia says that Bitcoin will not skyrocket just because the Federal Reserve is cranking up the printing press.
“Nobody should expect Bitcoin to necessarily go up in a short period of time even if they announce a trillion-dollar bailout. Bitcoin is not going to go up just because of that.”
While helicopter money will not likely boost the king cryptocurrency’s price, Assia says he is still a Bitcoin bull. He argues that investors can expect Bitcoin’s fundamentals to fuel long-term growth.
“Bitcoin is going to go up either because people who got the bailout money buy Bitcoin, which is not that likely but maybe.
But it is going to go up because it has a limited supply. It’s deflationary by nature, and over time, its value versus commodities, services, and fiat money should go up because it has a limited supply – if we assume constant increase [in] real demand for the usage of Bitcoin.”
BLOCKTV's Yonah Hochhauser spoke with @eToro founder & CEO @yoniassia about once-in-a-lifetime markets, global shutdown, #Bitcoin's reaction to this crisis, what opportunities does this situation present to a trader, & more.
— BLOCKTV (@BLOCKTVnews) March 22, 2020
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/oatawa/popcic