U.S Govts’ Emergency Money Plan Criticised By Bitcoin Users, Said it Makes fiat ‘Hard to Value’


April 16, 2020 4:20 pm

U.S Govts' Emergency Money Plan Criticised By The Bitcoin Users, Said it Makes fiat ‘Hard to Value’
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Since the United States showing another large stimulus package, Bitcoin (BTC) advocates are informing about losing the value of money.
Under a new government plan, the United States would contribute $400 billion on further stimulus projects, which means $2,000 per month for every adult.

Bitcoin 1-day price chart. Source: Coin360

Emergency Money for the People

Two Democrat congressmen have presented the Emergency Money for the People Act in a live stream on April 14, which will ensure a universal basic income of at least 6 months for over 16 Americans.

“We’ve got to put money in the pockets of people who have lost income,” and we have a bill that says you’re going to get up to 2,000 bucks — not just one time, but for six months.”

– Ro Khanna (one of the congressmen) said during the live stream.

This move appears as checks from the United State’s first series of cash handouts start operating bank accounts, the one-off payments for children worth $1,200 or $500 cover the majority of U.S. citizens, with President Donald Trump name on the checks.

At the same time, debate overflows after it appeared that banks can seize the funds if the receiver has debt obligations.

Federal Reserve balance sheet indicative chart. Source: Visual Capitalist

The volatility

Bitcoin users had already extensively criticised the plans, which many see as additional progress towards government economic meddling that few recommend promoted the coronavirus crisis, to start with.

Gold Bullion International co-founder Dan Taperio tweeted on Thursday, “The Rubicon has been crossed. Even surprises me and I have been a strong advocate for extreme policy response, ‘unlimited,’ in the face of economic collapse. Soon will be difficult to value money. If so, all society’s values realign. Expect volatility.”

The Moon, a twitter analyst, expressed doubts about the scope of the project. He tweeted“When the government says it will be “temporary”, then you know for sure it will be permanent.”

Bitcoin has redeemed from steep losses last month as investors look in scepticism at the dictate economy. A Federal Reserve spokesperson confessed publicly multiple weeks ago that the bank had “unlimited” money.

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