Bitcoin exceeds $ 7,000 when warning of $ 2,000 grant will make fiat ‘difficult to value’

Bitcoin price soared to $ 8,600, and the altcoin market became active again

Bitcoin (BTC) supporters are warning that money could lose value as the United States considers adding a massive stimulus package.

The US will spend US $ 400 billion on new stimulus measures, which will give each citizen $ 2,000 a month according to the new government plan.

Daily overview of cryptocurrency market. Source: Coin360

This move could be one of the reasons why the Bitcoin price suddenly jumped from as low as $ 6,650 to over $ 7,100 in just a few minutes - regaining a 5% loss earlier today.

Congressman: $ 2,000 subsidy "not just once"

In one session live stream On April 14, two Democratic senators presented the People's Emergency Fund, to ensure universal basic income for Americans over the age of 16 for at least 6 months.

"We put money in the pockets of those who lost income," Senator Ro Khanna explained during the live stream.

"And we have an invoice that says you'll get up to $ 2,000 - not just once, within 6 months."

The move comes as checks from the first US cash distribution round hit bank accounts. Valued at $ 1,200 or $ 500 for children, the one-off payments reach the majority of US citizens, with President Donald Trump claiming the checks bear his name.

At the time, controversy arose that banks could confiscate money if the recipient had a debt obligation.

Chart of Federal Reserve balance sheet. Source: Visual Capitalist

"Difficult to value money"

Bitcoin users are ready to expand the plans, which many consider to be a follow-up to the government's economic intervention that some proposals have facilitated the coronavirus crisis to begin.

“Rubicon has been overcome. Even surprised me and I became a strong supporter of the extreme, 'unlimited,' policy response to the collapse of the economy, ”said Dan Taperio, co-founder of Gold Bullion International. , tweet on Thursday, he added:

“Money will soon become hard to value. If so, all values of society will be readjusted. Expect fluctuations. ”

Meanwhile, cryptocurrency analyst The Moon also expressed doubts about the scope of the project.

"When the government says it will be 'temporary,' then you should understand for sure it will be permanent," he said. warning.

As Toiyeubitcoin reported, Bitcoin recovered most of its sudden losses last month when investors expressed skepticism about the fiat economy. A few weeks ago, a representative of the Federal Reserve admitted publicly that the bank had "unlimited" money supply.

Maybe you are interested: