The price of Bitcoin and other cryptocurrencies is set to rise due to the limitations of record-shattering stimulus packages, affirms the CEO of one of the world’s largest financial advisory and fintech organisations.
The comments from Nigel Green, chief executive and founder of deVere Group, come as the European Commission on Wednesday proposed a €750 billion ($826 billion) stimulus package to help the EU towards economic recovery.
In addition, in the U.S., the House passed a record-breaking $3 trillion relief package. Other countries’ central banks, including those in China, Japan and Australia, have taken similar measures.
Mr Green says: “The steps being taken by governments and central banks around the world to boost their respective economies can be expected to trigger a steady increase in the price of Bitcoin.
“As the largest cryptocurrency by market capitalisation, this will have the effect of bringing up the wider crypto sector too.
“By printing huge sums of helicopter money to push into financial systems, traditional currency becomes devalued.
“Bitcoin, of course, cannot simply be printed. Indeed, it is living up to its reputation as ‘digital gold.’ Like the safe-haven precious metal, it’s widely accepted as being a store of value and is valued for its scarcity.”
He continues: “There’s also the legitimate concern over inflation.
“Governments are promising literally boundless stimulus. This money has to go somewhere, so will prices rise? Many experts are expressing fears about a longer-term inflationary boom.
“To hedge against inflation risks, it is likely that more and more investors will increase their exposure to Bitcoin and other digital currencies, driving up prices.”
A high-profile cryptocurrency advocate, Nigel Green has recently noted that looking beyond the current macro climate, we will see an upward, long-term trajectory in the price of Bitcoin due to real-world issues it addresses and increasing adoption.
The deVere CEO concludes: “By the printing of never-seen-before amounts of money, traditional currencies are devalued, inflation fears rise, and crypto prices will steadily increase.”
Source: Prior Consultancy