During Trump’s administration, the price of bitcoin reached a peak of 3,660%in comparison with the dollar. Biden receives a depreciated official currency.
This Wednesday, January 20, Donald Trump left his charge as President of the United States in the hands of Biden and left to the new administration a dollar with the worst registered depreciation, a sum that surpasses the 3,600% in comparison with bitcoin.
When Trump received the presidency on January 20, 2017, Bitcoin’s price was lingering down the $ 1,000 mark, according to CoinMarketCap data. And today, the price is reaching the unbelievable points of $ 34,500 and with high hopes to cross that border.
The same year of the arrival of the now outgoing president, bitcoin went through the largest bull run since its creation, The cryptoccurrency’s price positioned near $20,000, with an appreciation of more than 2,000%. Then it suffered a sudden drop to $ 3,000 in March 2020, when the pandemic attacked the global economy.
There are two points to consider; they are the arrival of new institutional investors as well as the crisis that COVID-19 has unleashed in the entire globe. The inflation led to overprinting of fiat money and this consequently led BTC to break its all-time high and exceed $ 40,000 at the beginning of the year.
Dollar Printing and Bitcoin Monetary Policy are Consequences of the Crisis
The main measure to face the crisis during the year 2020 was the printing of more dollars. This happened in other countries. The purpose of this decision was to create a supportive environment in the market to help citizens and companies deal with all the adversities that confinement brought.
This printing of money last year was so huge that it created a consequent impact on the economy. More than 20% of all dollars in circulation are pieces of news. Those dollars have been in circulation since January.
Biden, on the other hand, seems to direct his action to a similar path. He considered in a tweet that stimulus checks would be a wonderful option.
Meanwhile, some opinions reflect a very negative point of view about the dollar’s current situation. Analysts and other financial institutions see the dollar in a very doubtful and dangerous path. Others sustain blander and positive theories. Those opinions point out to a future based on bitcoin.
People and organizations that sustain the fact that bitcoin might result in a better alternative than fiat currencies also point out that many changes need to occur for something like this to happen. Firstly, for bitcoin to establish itself as a stable currency that can compete with the dollar, it needs to upgrade its policies to align its interests with those of the governments.
Bitcoin is not an ordinary currency; it is going to take time for citizens to get used to it since fiat money has reigned for so many years in the world.
By: Jenson Nuñez
