2020 has been a wild ride for virtually every sector of the global economy. After all these roller-coaster experiences, businesses are now left wondering how to proceed. Brad Garlinghouse, Ripple Labs CEO, said that the COVID-19 pandemic is throwing very many playbooks out of the window. He posted in an August 28 tweet:
“Yesterday’s action flies in the face of decades of precedent”
His tweet pointed towards an August 27 article from the Wall Street Journal on the U.S. Federal Reserve. That article covered reasons why the Fed decided to keep interest rates low at a probable expense of higher inflation. Garlinghouse added:
“Signs point to further dollar debasement in the near term (leading to the further diversification of assets which will certainly be good for crypto)”
Since the start of the current health crisis which sparked fears and prevention measures in March, the United States economy has flipped onto its side. Significantly high jobless claims, business closures, money printing, and a wide variety of other factors have developed a giant puzzle in the matters of resolving the struggling scene.
Inflation and interest rates hold as two tools the United States government has been fiddling with as part of its tried resolutions. Although many challenges still exist, one possible outcome might be further bitcoin adoption as a reliable hedge as noted by several participants in the cryptocurrency space.
Gemini crypto exchange co-founder Tyler Winklevoss compared bitcoin with gold which is seen as a long-time store of value hedge. He mentioned the possibility where bitcoin can rise and reach $500,000. Will the flagship gain mass adoption sooner than expected? Time will tell.