So the result of the U.S. Elections are out, and Joe Biden has won convincingly. Even though the former President is alleging that the election was rigged and that he will go to the Supreme Court.
Things don't look too good for Donald Trump. It can be safely assumed that Joe Biden will soon see himself as the U.S. President.
Joe Biden's victory is not only good news for the Democrats but also the crypto investors. Now, as far as I can tell, since you have opened the link to this article, there is a high possibility that you are holding a significant amount of Bitcoins.
Now you must be wondering how Joe Biden's victory can be attributed to the rise of Bitcoin price. Just keep reading.
Why Does Joe Biden Release The Stimulus Packages?
When Joseph Robettin Bidn Jr came into power, he kept announcing Stimulus Packages. These stimulus packages were announced because of the massive destruction of lives and livelihood because of the COVID-19 pandemic.
The United States of America has been a complete failure in curbing the spread of Coronavirus. There are a lot of reasons for this, but it was mainly because of Trump's administration and its weird policies.
In the beginning, when the pandemic first started to take its grip over the world, Donald Trump laughed it out and made fun of the Coronavirus, saying that it was a hoax and, ever since then, curbing the spread of Coronavirus had been next to impossible.
This is why the present Government is releasing Stimulus Packages so that it can make an attempt to fill the void made in the lives of the people due to the Coronavirus pandemic.
How Will The Stimulus Packages Hike The Price of Bitcoins?
The thing with Stimulus or Relief packages is that it gives out a ton of money to the citizens. So in order to distribute $3B, the Government of the U.S. needs to print a whopping $3B in their reserves and then bring it into circulation.
Bringing more fiat currency into circulation gives rise to inflation. Now a normal rate of inflation is actually good for the economy, but too much inflation can cause the value of the fiat currency to go down.
The stimulus packages have led to the fall of the value of the dollars, and therefore, people are turning more to Bitcoins. The price of Bitcoins has been on the rise, even amid the COVID-19 pandemic.
During the COVID-19 pandemic, when everything seemed lost for crypto investors, Bitcoins' value came down to $3,800. Investors kept selling off their bitcoins as they were making losses.
Read the article Visit Here to know more. Amid all the chaos, investors with strong visions held on to their Bitcoins and started buying more Bitcoins as the prices were low.
This trend started generating a bullish market, and the price of Bitcoins kept soaring. Recently Bitcoins reached an all-time high of a whopping $42,000, and the prices are expected to reach $50K by the end of February.
How Inflation Influenced The Market?
Inflation has also led people to invest in tangible assets like Gold and Platinum, which have a limited supply. The Thing with Gold is that we know it is available in limited quantities, but we do not know the exact amount.
We all know that inflation is next to impossible in Bitcoins as there only are 21 million bitcoins in this world, and after that, the mining of Bitcoins will stop, and the prices will keep soaring.
Joe Biden's policies have always been extremely left-leaning; thus, the common people have always gained; it is totally opposite to the ideology of Trump and the republicans. The stimulus packages are not only helping out the normal citizens, but it is also making the use of Bitcoins more common.
Rumors have it that the Biden Government is on the verge of launching Central Bank Digital Currency as a substitute for Bitcoins.