“Bitcoin is going to really flourish in a time like this,” said Tim Draper in his recent interview where he talked about the impact of coronavirus pandemic on the economy and how “crisis is a good time for innovation and venture capital!”
The venture investor and Bitcoin adopter has gone through times like this before, big recessions where “people start thinking for themselves.” Also, this is the time when “some of the best entrepreneurial ideas,” and technologies that people have been reticent to bring into their fold comes out. “This tends to be a very good time for innovation,” he said.
With consumers having wide-open eyes, there is an opportunity as they start to innovate but the drawback is there is always a recession, a tightness of cash, and liquidity that can have a detrimental effect. Also, a lot of people lose their jobs during times like this, in the US an unprecedented nearly 10 million people filed for unemployment claims in two weeks, and that’s very tough, but it’s a part of the refreshing that happens to an economy.
As such, people are asking the question of how to use Bitcoin, smart contracts or artificial intelligence.
Hold on to your seats
In this crisis, bitcoin will flourish because governments are taking all this money and then they’re printing super amounts of money.
Central banks have trillions of dollars to give out but Draper said they can’t put them into the economy very easily. They have to do it through the SBA and there’s all sorts of friction to getting the money so it’ll be years before that money actually permeates the economy, so “this is going to be a really interesting time where people say well why don’t I just use Bitcoin.”
With only 21 million BTC to be there ever, “people don’t have to worry about whether a government is diluting their currency by printing tons of it. We can instead just use a currency we all agree on and it’s all a part of the economy and it’s already frictionless and open and transparent and global but why bother with these other ones, so that’s an exciting thing,” said Draper.
Robert Kiyosaki, author of ‘Rich Dad, Poor Dad’ and a bitcoin proponent also shared that instead of cash, gold and bitcoin are the best options at a time when the central banks have taken to printing money.
WHY IS DOLLAR DYING? 2008 Fed printed $4.5 Trillion to save rich. 2020 Fed will have to print $6-8 Trillion, maybe more to save US economy. There is only $9.5 Trillion in gold in WHOLE WORLD. Buy real gold silver Bitcoin. No paper ETF gold or silver. PhDs at Fed are IDIOTS.
— therealkiyosaki (@theRealKiyosaki) April 7, 2020
After bitcoin and crypto prices crashed in a recent sell-off, both retail and institutional buyers are taking a special interest in Bitcoin.
half the GMI readers bought it this week 😉
— Raoul Pal (@RaoulGMI) April 7, 2020
“The global macro environment has never before aligned the stars to highlight the value proposition of crypto quite like what we’re about to see in the next 24 months. Hold on to your seats,” said Brendan Blumer, co-founder and CEO of Block.One, the company behind EOS.