During the economic crisis generated by the emergence of the Coronavirus, the influence that the pandemic may have on the price of Bitcoin has been debated. Especially with those who consider the cryptocurrency an asset for a store of value, waiting for an increase in its price. An opinion with which the Winklevoss brothers would agree, for whom the weakness of the dollar will take Bitcoin to 500,000 dollars.
The Coronavirus Crisis
The consequences of the Coronavirus crisis have been abysmal. Well, it’s not just the thousands of deaths that the disease has caused around the world. Also, to the human balance generated by the disease, the economic consequences of it must be added. Managing to bring the economies of the main world powers to their knees, by interrupting normal trade flows, as well as production processes.
Because of this, nations such as the United States, Japan, and the countries of the European Union have had to implement multi-million dollar stimulus plans. Investing billions of dollars to try to keep their economies standing, amid the quarantine situation imposed by the virus.
However, these measures have not been unanimously applauded. Well, there are certain analysts, including those close to the world of cryptocurrencies, who see these measures of state intervention in the economy, especially in the United States, as the germ for future inflation. Increasing, for example, dramatically, the amount of dollars in circulation.
And, although several economists have already responded to this vision, declaring that although the supply of dollars has increased, their demand has also increased. For crypto influencers like the Winklevoss brothers, the result of this whole situation will inevitably have to be the weakness of the dollar and the rise in the price of Bitcoin.
Winklevoss brothers see a Bitcoin at $ 500,000
Thus, in an entry on their blog Winklevoss Capital, the brothers refer to the situation of the US dollar. Well, although the main indicators that measure the health of the currency seem to be in order. For the twins, the unlimited printing of dollars will eventually weaken the currency, and strengthen Bitcoin.
«Even before COVID-19, and despite the longest bull market in US economic history, the government was spending money like a drunken sailor, cutting taxes like Mad Eddie, and printing money like a banana republic.«.
Meanwhile, alternative store-of-value assets, such as gold, will also be hit in the medium term due to their difficulty in transportation. So, a cryptocurrency like Bitcoin could end up being the solution for investors. Being a safe haven of value and easy to transport and exchange.
Thanks to this, for the Winklevoss brothers, Bitcoin is undervalued by a factor of at least x45. So they predict that in the medium term the cryptocurrency will begin to cut back against gold. Eventually reaching the price of $ 500,000 per BTC.