Bitcoin, Cryptocurrency and the Pandemic
The economic impact of the Covid-19 pandemic has changed the US and global economies. The common thread of governmental responses to the pandemic have involved various degrees of quantitative easing and monetary policy. The overall effect suggests that there will be currency inflation due to policies that increase money supplies. Preserving Cash Value The past impact of economic shutdowns were sharp and severe. They required governmental action to ensure economic viability for broad swaths of populations. In the US, government efforts included multi-trillion dollar investments in economic sectors. businesses, and households. Whether this type of action will continue may be in douubt, but the Federal Reserve policy seems certain- they will continue to pump money into the banking and finance systems. In a period of monetary easing, some companies with cash reserves have decided to diversify their holdings with Bitcoin. Their theory is that Bitcoin may be a more stable value in a peri