Tyler Winklevoss Believes Federal Reserve Is ‘Biggest Booster’ for BTC

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by Benjamin Godfrey · 3 min read
Tyler Winklevoss Believes Federal Reserve Is ‘Biggest Booster’ for BTC
Photo: TechCrunch / Flickr

While Tyler Winklevoss has highlighted the positive tilt of Powell’s policy turnaround as favorable to Bitcoin (BTC), analysts believe the plan to shore up inflation may be good for the economy now.

Tyler Winklevoss, the co-founder and CEO of U.S.-based cryptocurrency exchange Gemini, has stated that the United States Federal Reserve is the ‘Biggest Booster’ for Bitcoin (BTC) price. He made this known in a tweet ahead of the Federal Reserve’s scheduled annual Jackson Hole conference with a speech to be delivered by the Fed chairman Jeremy Powell which will see the central bank begin to target higher inflations.

While Tyler Winklevoss, the renowned vocal crypto advocate has highlighted the positive tilt of Powell’s policy turnaround as favorable to Bitcoin (BTC), analysts believe the plan to shore up inflation may be good for the economy at such a time as this. Through the speech, Powell is expected to announce the plans to raise the inflation level beyond the pegged 2%.

“Heading into Jackson Hole we are confident Chair Powell will use his speech Thursday to tee up a profoundly consequential and risk-friendly move to soft inflation averaging at the Fed’s upcoming September meeting,” wrote Krishna Guha, head of global policy and central bank strategy at Evercore ISI. The analyst and his team expect the Fed to “seek a moderate inflation overshoot during the recovery phase of this cycle” as a way to avert “Japanification,” or an extended period low growth marked by weak inflation.

With the COVID-19 situation causing a cataclysmic decline in jobs, a revamped policy to accommodate or enhance people’s purchasing power with the little cash available for sustenance is required. While this proposed inflation hike policy is expected to be in place until inflation and employment are both stabilized, Tom Graff, head of fixed income at Brown Advisory believes the Fed does not have enough credibility to hike the inflation which will affect other financial rates. 

“Central bank credibility is crucial. Currently, they don’t have any credibility that they can or are willing to allow inflation to be higher than 2%, and that’s a problem,” Graff said. Adding “Actions are going to speak louder than words. The market’s going to have to see them not hike interest rates even as unemployment gets much lower before they’ll believe it.”

Why Tyler Winklevoss Believes BTC Will Benefit from This Proposed Inflation Hike

Before now and particularly as the coronavirus pandemic shoved in uncertainty across major economies, investors have always resorted to relatively stable assets as a hedge against inflation. Bitcoin (BTC) and gold are the two relatively safe assets that can provide this needed hedge and not under the control of any central government.

In advocating a case for Bitcoin (BTC) as Tyler Winklevoss, crypto-centric hedge fund manager Paul Tudor Jones once insinuated that investors should start taking Bitcoin investments seriously. With an affirming investment in bitcoin, Jones set a precedent for other institutional investors like MicroStrategy to pump funds in the pioneer digital currency. 

Bitcoin is immune to inflation as its supply is fixed, unlike fiat currencies like the U.S. dollar, and should chairman Powell affirm the inflation news making the rounds, Bitcoin will become more enticing to a whole lot more people.

Bitcoin News, Cryptocurrency news, News
Benjamin Godfrey

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.

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