Several reports have emerged regarding the plan to have a $3 trillion relief and infrastructure package amid the Covid-19 pandemic, to be implemented by the newly-elected president of the United States, Joe Biden.
This has led various crypto enthusiasts to believe that Bitcoin will likely skyrocket as a consequence, seeing as, at that point, the US Dollar would pale in comparison to BTC as a store of value, which would further boost the cryptocurrency’s adoption rate.
Crypto Community: Stimulus Packages Are Good for BTC and Bad for USD
Since the news of the “Build Back Better” program, the guise of a $3 trillion Covid relief and infrastructure package, crypto enthusiasts have been feeling giddy, as it seems that this could only bolster Bitcoin, as well as the crypto industry further.
Popular crypto YouTuber Ivan on Tech was quick to tweet about how the new president package was going to move Bitcoin into new levels. According to him, the stock market and Bitcoin would reach “insane heights” by February.
Bitcoin doom prediction tracker Bitcoin Archive also pointed out how Bitcoin shot up by 35% during the stimulus check announcement last year, giving his own prediction as to how high BTC could go if Biden announced another one soon.
Bitcoin JUMPED +35% when the 3 trillion stimulus was announced in July, 2020. That could take BTC to 55K if it happened again.
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) January 10, 2021
Another Twitter user rhetorically asked whether this would be the last stimulus check in Biden’s time on the oval office, considering that he is willing to issue $3 trillion on the first month of the year as president.
Biden proposes $3 Trillion Covid Relief
Since the outbreak of the novel virus, authorities in the American country have authorized the distribution of dollars to Wall Street institutions and special interests. Fortunately, citizens of the country were also able to enjoy a stimulus of $1200 in the last issuance, and then another $600 check about a week ago.
This means that trillions of dollars have been spent on Covid relief and economic stimulus packages since the start of the pandemic. Moreover, estimates have also shown that a quarter of all of the dollars in existence have been minted last year as a result. This has led many to question whether stimulus checks are actually helping the economy, or merely debasing the national currency.
And with the incoming president set to distribute another $3 trillion once his administration commences, the circulating supply of USD is likely to be inflated again.