Bitcoin Hits $7K Amid Warning $2K US Payouts Make Fiat ‘Hard to Value’
Bitcoin (BTC) advocates are warning of money losing all sense of value as the United States weighs yet another giant stimulus package.
The U.S. would spend $400 billion on new stimulus measures to pay every adult $2,000 a month pocket under a new government plan.
Bitcoin 1-day price chart. Source: Coin360
Congressmen: $2K handouts “not just one time”
In a live stream on April 14, two Democrat congressmen have submitted the Emergency Money for the People Act, which would ensure a universal basic income for Americans over 16 for at least half a year.
“We’ve got to put money in the pockets of people who have lost income,” one of the congressmen, Ro Khanna, explained during the live stream.
“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.”
The move comes as checks from the U.S.’s first round of cash handouts begin hitting bank accounts. Worth $1,200 or $500 for children, the one-off payments cover the majority of U.S. citizens, with President Donald Trump insisting the checks bear his name.
At the same time, controversy abounds after it emerged that banks are able to confiscate the money if the recipient has debt obligations.
Federal Reserve balance sheet indicative chart. Source: Visual Capitalist
“Difficult to value money”
Bitcoin users had already widely panned the plans, which many see as a further move towards government economic meddling that some suggest facilitated the coronavirus crisis to begin with.
“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,” Gold Bullion International co-founder Dan Taperio tweeted on Thursday, adding:
“Soon will be difficult to value money. If so, all society's values realign. Expect volatility.”
Twitter analyst The Moon meanwhile aired suspicions about the scope of the project.
“When the government says it will be ‘temporary’, then you know for sure it will be permanent,” he warned.
As Cointelegraph reported, Bitcoin has recovered from abrupt losses last month as investors stare in disbelief at the fiat economy. Several weeks ago, a Federal Reserve representative admitted publicly that the bank had “unlimited” money.