Bitcoin has suddenly soared 4 percent to break the $7,000 resistance and the price keeps increasing as news of new bigger stimulus checks spreads
The price of the flagship cryptocurrency has broken the $7,000 barrier. The likely reason is the cumulative effect from the coronavirus impact on the global economy, including the stimulus checks introduced by Donald Trump with his name on them.
However, just recently, the US government made a decision to start issuing $2,000 checks instead of the $1,200-version, as a temporary measure to support the economy and US citizens while millions of them are becoming unemployed.
As per Bitcoin advocate Anthony Pompliano from Morgan Creek Digital, these checks will be handed out until the employment rate reaches the level that it was before the pandemic broke out.
VC investor and a popular crypto podcaster Pomp stated that unless this measure is taken, there would likely be social unrest. However, he added that printing those checks may continue for a long time.
The head of Binance, CZ, believes that this would lead to an unemployment increase, fewer people finding jobs (if they have the survival checks) and prices on goods and services skyrocketing.
“Wouldn’t this encourage more unemployment? They can’t stop, they will just print more money. As it goes, fewer people will be working. Prices will sky rocket. I don’t see how they will address the hyper-inflation side of the problem. Maybe worry about that later?”
