It is a delicate moment for the whole world. Well, due to the crisis caused by the Coronavirus pandemic, practically all countries are facing serious economic crises. Which has pushed governments to put in place multi-million dollar stimulus plans to avoid a total collapse of the economy. That is why, and in the face of the possible next great American stimulus, Changpeng Zhao mentions in the Tweet of the day that stimuli are good if you have cryptocurrencies:
Stimuli and cryptocurrencies according to Changpeng Zhao
In recent months, economic stimuli have become one more part of our daily lives. And it is that, the paralysis of large parts of the commercial and industrial sector around the world, due to the social distancing measures adopted to face the Coronavirus. They have led to the biggest global economic crisis since the financial crisis of 2008.
For this reason, and to avoid a total collapse of their economies, governments like the United States have strongly intervened in the market. Introducing billions of dollars to alleviate the pressures that businesses and citizens are facing. In an attempt to prevent the health crisis from being compounded by a humanitarian catastrophe due to a total downturn in the economy.
However, many analysts question the true effects of these measures, especially from the world of cryptocurrencies. Well, the massive printing of money behind these stimulus plans ends up generating inflation and weakening fiat money, or at least that is the position of figures like Changpeng Zhao, for whom the true benefit of the stimulus will be seen by cryptocurrency owners.
«Stimulus is bad if you hold fiat. The stimulus isn’t really that bad if you only have cryptocurrencies. It is not financial advice«.
Thus, Changpeng Zhao would give a boost to the position that considers that cryptocurrencies, unlike fiat money, are not susceptible to inflationary crises. So, as fiat weakens from massive government stimulus, the winners will be the crypto asset holders.