The cryptocurrency world has long held onto the hope that institutional investors will make their way into their side of the market, and the steady increase of Bitcoin this year shows that it is happening. However, if the economic plan that Bernie Sanders has in place is implemented, Bitcoin could soon see a major surge in investors.
Stephanie Kelton, the senior economic advisor to Sanders and a US economist, recently posted a tweet that appears to launch an attack on the dollar.
— Stephanie Kelton (@StephanieKelton) April 24, 2019
If the bank ended up printing more money, the whole economy would go into hyperinflation and the dollar would become substantially weaker. Much like Venezuela, it is possible that the citizens would look to Bitcoin to use it as a store of value.
Anthony Pompliano, the co-founder of Morgan Creek Digital, posted to Twitter as well, saying that Bitcoin would ultimately be used in an
“attempt to stop the madness.”
Quantitative Easing was simply a government sanctioned ICO.
The currency is backed by nothing, is printed out of thin air, and was handed to insiders under the guise of "making the world a better place."
Bitcoin is the general population's attempt to stop the madness.
— Pomp 🌪 (@APompliano) April 5, 2019
The analogy is poor, at best. A carpenter has to fill the inches with finite sources. A team in a stadium could receive plenty of points, but they have to earn them. An airline would end up losing all of their money if they used frequent flyer miles in the way that Bernie Sanders wants to print money.
The fact that an advisor to a presidential candidate is voicing this opinion is worrisome, considering that anyone with experience with hyperinflation knows the kind of damage that it can do in an economy. In Germany, the country faced hyperinflation following World Ware I, which left the citizens poor and vulnerable during the Second World War. In the 1990s, Zimbabwe’s government printed such an excess of money that the public basically became trillionaires, but their wealth didn’t increase at all.
At this point, the views of Sanders are not radical. Even compared to Donald Trump, Barack Obama, or George W. Bush, their own radical way of thinking is only a little different. However, it is worth noting that the government appears to spend their cash like it won’t ever right out. The Federal Reserve System ensures that the supply will not actually run out, but that does not mean the value will remain.
Already, anyone can see the way that investors and consumers are starting to put their trust in inflation-proof savings options, like gold, silver, and cryptocurrency.
Image Courtesy of ABC News.