Along with an incremental shift upward above $7000, Bitcoin value is also being supported by some new remarks and philosophies about what might happen as our coronavirus crisis involves.
“It’s a common refrain heard these days from bitcoin bulls: that the U.S. dollar and other currencies will eventually be debased by the injections of trillions of dollars of coronavirus-related aid and monetary stimulus by governments and central banks,” writes Bradley Keoun today at Coindesk. “That should, theoretically, strengthen the case for Bitcoin, the oldest and largest cryptocurrency, as a hedge against inflation.”
Keoun then outlines a scenario where inflation eventually leads to Bitcoin value gains, but where high unemployment may be causing a temporary delay on these changes by keeping consumer prices relatively low for a while.
Keoun then addresses the planned Bitcoin halving event slated for May:
“The investment narrative that bitcoin is a ‘harder’ currency than U.S. dollars and is getting additional traction from next month’s “halving” on the bitcoin blockchain – the once-every-four-years occurrence by which the pace of issuance of new units of the cryptocurrency gets cut in half,” Keoun writes.
Amid these changes, people on both sides of the Bitcoin debate are digging in with proponents suggesting that Bitcoin will indeed be a safe harbor for investors in a turbulent equities market.
Michael Novogratz is one such Bitcoin bull cited by Keoun’s article, saying that long-term issues with quantitative easing and the injection of money by the Fed are
“exactly why Bitcoin was created.” Keep in mind that Novogratz, together with figures like Anthony “The Pomp” Pompliano, are some of the most visible and loudest BTC fans.
On Thursday Omkar Godbole, Coindesk’s resident BTC value analyst, cited Chicago Mercantile Exchange Bitcoin futures volume as part of a booster for recent BTC price increases.
Keep an eye on where Bitcoin goes this week, as investors look at markets with a wary eye.