Anthony “Pomp” Pompliano, co-founder of Morgan Creek Digital, argued that the US government’s response to COVID-19 isolation would lead to the introduction of the cryptocurrency.s from new users.
During a conversation with Binance CEO Changpeng Zhao in consensus: distributed on May 12th Pomp argued that the uncertainty and fear associated with monetary policy contain the effects of the economic slowdown will make ordinary people look for inflation hedge and alternative value reserves.
The incentive will increase demand for alternative assets
When asked if the coronavirus pandemic is driving more people to cryptocurrencies, Pompliano said, “I don’t know if COVID-19 does. I think the response to COVID-19 is likely to let you see the central banks of Everyone is printing trillions of dollars. “
“Fear of inflation, whether it happens or not, will lead people to first look for something like Bitcoin that is a hedge against inflation, and second, if currencies fail, people will look [lo que] Save value or move it more easily “he continued.
“As we see in places like Lebanon, etc., where there are lots of capital controls and horrific bank and government behavior, I think people will be looking for assets that just need an internet connection to do transactions. It’s great bullish for Bitcoin and Crypto Space in general. “
Bailouts create the “perfect storm” for cryptocurrencies
Zhao also stressed the impact of rescuing large companies that were “too big to fail” in the midst of the recession, saying:
“Any company that requires a bailout is fundamentally poorly managed by definition, and this long-term impact is serious. So who will save the government? If you are a fund and invest in a number of bankrupt companies, the one below will not do well . “
“These long-term effects are actually very painful and very shocking.”He said, “They don’t appear on the second day, but when they appear slowly, the effects are huge.”
“I think how many people say this is the perfect storm for cryptocurrencies.”Zhao added.