As governments worldwide continue to print money to address the economic fallout from the new coronavirus, an increasing number of people are looking at the value that cryptocurrencies might offer.
What do successful venture capitalists, CEOs of leading companies, and economic experts have in common? They all warn that the next two years could be extremely interesting and exciting for Bitcoin.
Tim Draper still stands by his earlier prediction that BTC will reach a quarter of a million dollars by early 2023.
He believes the ongoing pandemic has exposed the weaknesses of centralized fiat currencies, and once the crisis passes, many people will turn to Bitcoin. With advances in scalability, we could soon witness the dawn of mass adoption, a time when cryptocurrencies increasingly replace cash in economic activity.
Brendan Blumer, CEO of Block.one and founder of the EOS coin, said that inflation-resistant cryptocurrencies will come into focus as nations continue to print more money to fight Covid-19.
“The global macroeconomic environment has never been as favorable as it will be over the next 24 months to highlight the value of cryptocurrencies. Hold your position.”
Blumer noted that many investors who shifted part of their portfolios into cash are now worried they will get stuck with it. Galaxy Digital CEO Mike Novogratz echoed this view, responding that he had already observed growing interest in the crypto market.
It’s not an impossibility but I think you underestimate how many people have moved into cash and are now scared they’re going to get stuck with it. Right now it’s not about what investment is the most attractive, it’s about what is the least unattractive.
— Brendan Blumer (@BrendanBlumer) April 7, 2020
Elon Musk, CEO of Tesla and SpaceX, said earlier this year that Bitcoin could replace cash, an assertion he made during an interview on the Third Row Tesla podcast.
There is also a practical reason supporting the shift to digital money. The novel coronavirus that causes Covid-19 can survive on surfaces for hours, so using cash to pay for goods carries potential risk: we could unknowingly spread the “invisible killer.”
If Bitcoin becomes easier to transfer and more scalable, people may view it as a simple, natural choice. It would offer a transparent, borderless, low-fee alternative to credit and debit card payments.
What do you think will happen?
BTC surpassed its resistance at $7,200 in the early hours of Monday, and many now believe the bulls are in control. If that is the case, Bitcoin should face few obstacles on the way to the $8,000 level.