During the economic crisis generated by the emergence of the Coronavirus, the influence that the pandemic may have on the price of Bitcoin has been discussed. Especially with those who consider cryptomoney an asset for reserve value, expecting an increase in its price. An opinion that would be shared by the Winklevoss brothers, for whom the weakness of the dollar will push Bitcoin to $500,000.
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The Coronavirus Crisis
The consequences of the Coronavirus crisis have been abysmal. Well, it is not only the thousands of deaths that the disease has caused around the world. Also, to the human balance generated by the disease, we have to add the economic consequences of it. It has brought the economies of the world’s major powers to their knees by interrupting normal trade flows, as well as production processes.
Because of this, nations such as the United States, Japan and the countries of the European Union have had to implement multi-million dollar stimulus plans. Investing billions of dollars to try to keep their economies on their feet, in the midst of the quarantine situation imposed by the virus.
However, these measures have not been unanimously applauded. Well, there are certain analysts, including those close to the world of cryptomonies, who see these measures of state intervention in the economy, especially in the United States, as the germ for future inflation. By increasing, for example, the amount of dollars in circulation.
And, although several economists have already responded to this vision, stating that although the supply of dollars has increased, so has their demand. For crypto influencers like the Winklevoss brothers, the result of this whole situation will inevitably be a weak dollar and an increase in the price of Bitcoin.
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Winklevoss Brothers see a Bitcoin at $500,000
Thus, in a post on their blog Winklevoss Capital, the brothers refer to the situation of the US dollar. For, although the main indicators that measure the health of the currency seem to be in order For the twins, the unlimited printing of dollars will eventually weaken the currency, and strengthen Bitcoin.
„Even before COVID-19, and despite the longest bull market in US economic history, the government was spending money like a drunken sailor, cutting taxes like Mad Eddie, and printing money like a banana republic.
Meanwhile, alternative reserve assets of value, such as gold, will also be hit in the medium term because of their difficulty in transportation. So, a cryptomoney like Bitcoin could end up being the solution for investors. As it is a safe and simple to transport and exchange.
Thanks to this, for the Winklevoss brothers, Bitcoin Rejoin is undervalued by a factor of at least x45. So they predict that in the medium term the cryptomoney will start to cut back on gold. Eventually reaching the price of $500,000 per BTC.