The leading cryptocurrency bitcoin has undergone a strong rally over recent months, gaining in tandem with legacy markets. While many think that the cryptocurrency’s rally is just a byproduct of a correlation with the S&P 500, some think the asset has immense intrinsic value in the current macro environment. Namely, with the vast amount of money printing taking place, the value of a decentralized, digital, and scarce currency rises dramatically.
“Bitcoin will be your only refuge.”
Tyler Winklevoss, the co-founder of crypto exchange Gemini, tweeted, “Stonks love nothing more than when the money printer goes brrrr like an A-10 warthog. It’s full-fledged addiction that’s not going to end until it has to. When that will happen is hard to predict, but what’s certain is that #Bitcoin will be your only refuge.” Due to the ongoing global pandemic, governments and central banks worldwide have been forced to inject trillions of dollars worth of capital into the economy. As a result, the value of traditional, scarce assets has risen as money has become increasingly cheap.
Stonks love nothing more than wen the money printer goes brrrr like an A-10 warthog. It's full-fledged addiction that's not going to end until it has to. When that will happen is hard to predict, but what's certain is that #Bitcoin will b your only refuge. https://t.co/8ivInAcroP
— Tyler Winklevoss (@tylerwinklevoss) October 9, 2020
Tyler Winklevoss calls the stimulus proposal an advertisement campaign for bitcoin.
As reported earlier, the White House is preparing for a new 1.8 trillion dollar stimulus proposal to help the economy. The act of injecting capital into the market is not seen as a good move in the long term as it creates the risk of hyperinflation in which the value of currency devalues significantly. Tyler Winklevoss believes that the latest stimulus proposal would instead help bitcoin. The co-founder of Gemini crypto exchange Tyler Winklevoss tweeted that the White House is proposing a new 1.8 trillion dollar advertisement campaign for bitcoin.
