Excellent News For Bitcoin As WSJ Fears Biden Going “Full Stimulus”

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Last Updated on 6 January 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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The influential Wall Street Journal (owned by Rupert Murdoch who also directs the more Republican oriented Fox News) is positioning itself as the main opposition for Joe Biden’s presidency as of late. Whereas a few weeks ago they started a discussion as to whether or not the new First Lady deserved to be called Dr or not, this time round they are fearing Joe Biden going “Full Stimulus” as they say.

Bitcoin analysts are of course welcoming the news. We explain.

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Hedge against inflation

Paul Tudor Jones was one of the first hedge fund managers last year to embrace Bitcoin, when Satoshi Nakamoto’s crypto was still trading at around $10,000 in the month of May. He made it clear that Wall Street was looking for a hedge against deflation as the Trump presidency had started printing money to send out stimulus checks.

By now, the Wall Street Journal has learned that Trump’s stimulus will pale in comparison as to what Joe Biden has in mind.

They stated in an opinion piece that:

With Joe Biden now making it clear that the recent $900B stimulus will “at best only be a down payment” and the now $3.3T of total stimulus spending “is just the beginning,” it sounds like America is headed into a program of permanent stimulus.

Of course, the more money is being printed by central banks, the more investors will look for safe havens to park their funds. Given that gold has risen some 25% in 2020 versus Bitcoin’s 400%, that could be a very easy choice.

Full Zimbabwe

According to a Bloomberg calculation, the global central banks assets expanded by 9.2 trillion dollar in 2020, compared to only 3.1 trillion dollar to overcome the 2008 financial crisis.

Plan B, the anonymous Dutch trader who claims that Bitcoin is following his stock to flow model which was also featured in Saifedean Ammous’ book called The Bitcoin Standard claimed Joe Biden would be taking the US on the road to going “full Zimbabwe” (referring to the famous going full retard scene from Tropic Thunder).

That country was one of the last (other examples include Venezuela, Argentina and Germany during the Weimar Republic) to turn on the money printers to infinity, ending up with bills that had more zeroes on it than there was space on the paper.

If that happens, expect Bitcoin to cross $100,000 in no time of course.