In a meeting on Thursday evening, White House and Democrats failed to come to a consensus regarding a suitable coronavirus stimulus package. According to Gemini co-founder Cameron Winklevoss, the failure of the three-hour negotiations to yield a major relief deal for the United States shows that the dollar has become “funny money” and an endorsement of bitcoin.
“An Endorsement Of Bitcoin”
CNN reported on August 6 that the talks between top White House officials and Democratic leaders had reached an impasse. This is because the two parties wanted relief packages that varied by several trillion dollars. For context, CNN quoted House Speaker Nancy Pelosi saying that they were “very far apart” regarding reaching any agreement.
According to Cameroon, the fact that politicians cannot seem to agree on the trillions of dollars to offer as relief package only goes to show that the dollar has become funny money. In other words, it was not long ago when a billion was a big number, but politicians are now speaking of trillions. “If this isn’t a wakeup call and an endorsement of bitcoin I don’t know what is,” Winklevoss posited in his tweet.
Coronavirus-Fuelled Rush For Assets With Safe Haven Appeal
Amidst the economic crisis wrought from the COVID-19 pandemic, central banks have been printing insane amounts of money to revive their economy. The Federal Reserve’s balance sheet, for instance, now stands at $6.9 trillion as of August 7. The helicopter money has several market observers concerned about the long-term impact on the US dollar.
While the dollar has been weakening, safe-haven assets like bitcoin, gold, and silver have been shining over the past couple of months. Bitcoin’s 21 million hard-capped supply has made the asset even more attractive against the backdrop of infinite money printing.
The risk of dollar inflation has led to many investors like Wall Street fund manager Paul Tudor Jones investing in bitcoin to preserve the value of their wealth. As ZyCrypto reported earlier, Nasdaq-listed billion-dollar company MicroStrategy is the latest to turn to bitcoin as a hedge against the weakening dollar.