Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
The US Congress now has the democrats in the majority and this may get the Biden administration a free ride to getting the new stimulus bill to be approved.
With the United States of America, the most powerful nation in the world set to usher in the Joe Biden administration in a few days’ time, Bitcoin may see new price highs owing to the potential monetary policies to be rolled out by the new government. One of the major action calls for the potential new rally yet to be seen will be fueled by the proposed $3 trillion stimulus package being proposed by the confirmed president-elect, putting tons of newly minted fiat dollar into circulation.
As seen in the past year, the response of the Federal Reserve and the United States Treasury toward combating the economic pangs brought by the coronavirus pandemic has always revolved around the printing of money in stimulus packages. The outgoing Donald Trump administration signed a $2 trillion stimulus package back in the first quarter of 2020, with $2,000 being sent to every qualifying American. Another $900 billion dollars was signed in December with plans to roll out $600 in cheques to Americans. These monetary moves make the bull case for Bitcoin.
The presence of more money in circulation automatically drives inflation as the purchasing power of the fiat currency in circulation remains at a low. Wall Street firms in the wake of this reality thus seek alternatives beyond Gold, the traditional asset that has served as a hedge against inflation for decades. The institutions’ chosen alternative was Bitcoin (BTC) with firms like MicroStrategy Incorporated (NASDAQ: MSTR) buying up over 70,000 BTC, with the determination to buy more in line with the business intelligence firm’s Treasury Reserve Policy.
President-elect Joe Biden per a report from Axios, an Arlington-based news outlet, is set to push Congress to add $1,400 to the $600 stimulus benefit and also push for another $3 trillion to rebuild infrastructure as well as other economic necessities to actualize his “Build Back Better” agenda.
Biden Administration May Get a Free Ride to the Bill
Undoubtedly, the United States Congress now has the democrats in the majority and this may get the Biden administration a free ride to getting the new money-packed stimulus bill to be approved, but all in favor of Bitcoin.
When the bill gets passed, the dollar will take the hit just as expected, and perhaps, indecisive institutions on Wall Street may begin to see the need to safeguard their balance sheets against the imminent dollar devaluation inflation that is set to be ushered in by the excessive money in circulation.
As Bitcoin entered the year 2021 with a new all-time high of $42,000, however, it started its movement down now. Nevertheless, there are broad speculations and projections that the coin’s worth will beat even a 10x valuation from its current price in a few years to come. The rollout of more stimulus will only help to drive the growth of the coin, particularly for the next 4 years.