Coronavirus stimulus failures show just how irrelevant the dollar supply has become and this “a wakeup call” for those not looking at Bitcoin, Cameron Winklevoss argues.
The United States’ failure to agree on Coronavirus stimulus shows that the dollar is “funny money” and endorses Bitcoin (BTC), says Cameron Winklevoss.
In a tweet on Aug. 6, the Gemini exchange co-founder delivered a damning appraisal of the lack of progress in Washington to deliver more financial aid.
A “wake-up call and endorsement of Bitcoin”
Talks between Democrats and Republicans were “on the brink of collapse,” CNN reported on Friday, as the two sides’ desired stimulus totals differed by several trillion dollars.
For Winklevoss, the idea that politicians could plan for the same goal with wildly varying sums of money said more about the value of the dollar than their differences.
“The US dollar has become such funny money that politicians are now ‘trillions of dollars apart’ in stimulus negotiations. Remember when a billion was a big number?” he wrote.
“If this isn’t a wakeup call and an endorsement of Bitcoin, I don’t know what is.”
His comments come as USD weakness plays out in an investors’ rush to safe havens, with both Bitcoin and precious metals seeing significant gains.
Meanwhile, brother Tyler Winklevoss weighed in on the news that Goldman Sachs, historically risk-averse on Bitcoin, had hired a dedicated head of digital assets.
“Now Goldman Sachs is into Bitcoin. What an about face from their ‘Don’t Buy Bitcoin’ Report issued 3 months ago in May,” he commented.
As Cointelegraph reported, the trend may well continue if the Federal Reserve enacts measures to boost inflation from 0.6% to 2%–4%, something which would be “wildly bullish” for gold at least, one analyst said this week.
Pal: Bitcoin beats gold in the face of G4 money printing
Regardless of the stimulus deal reached by the government, the expansion of the money supply and artificial shoring up of markets will inevitably embolden Bitcoin proponents.
The Fed’s balance sheet stood at $6.94 trillion on Aug. 7, with U.S. gross national debt at $26.6 trillion or $214,000 per taxpayer.
Federal Reserve balance sheet year-to-date chart. Source: Federal Reserve
Beyond the U.S., meanwhile, the impact of money printing has become so alarming that analysts are revealing bizarre investment figures, which could only have occurred as a result of major currency interventions.
For example, the Turkish lira plunged to a record low against Bitcoin earlier this week, with investors questioning the country’s ability to prop up the value of its ailing currency.
Elsewhere, the combined balance sheet of the G4 nations’ central banks has ballooned so much that it makes gold’s rise to all-time USD highs look insignificant.
“Many of us own gold to offset the dilutive effects on fiat currency of the growth in major central bank’s balance sheets. However, the BS of the G4 has outpaced the rise in gold,” Raoul Pal, founder and CEO of Global Macro Investor and Real Vision Group, tweeted on Thursday, uploading comparative charts.
Continuing, Pal noted a significant advantage of Bitcoin over gold in this respect, despite its latent gains versus the precious metal.
“In fact, only one asset has offset the growth of the G4 balance sheet. It’s not socks, not bonds, not commodities, not credit, not precious metals, not miners. Only one asset massively outperformed over almost any time horizon. Yup. #Bitcoin $BTC.”