Parker Lewis, head of business development at Unchained Capital, said he saw the government’s recent economic talks as a sign that it was time to collect more Bitcoin (BTC).
“Every time I hear a new trillion dollar incentive, I buy Bitcoin right away.”said Lewis to the co-founder of Morgan Creek Digital, Anthony Pompliano, in an interview on June 26th. “”This is my new trigger and apparently I can buy Bitcoin every week. “
The United States government continues to spend
After the corona virus was the focus of a pandemic in March 2020, The U.S. government has taken numerous steps to stop the spread of viruses, including housing orders and closings. The authorities then took steps to correct the ensuing weak economy, including a $ 2 trillion stimulus package.
By pointing out the current massive government spending at the beginning of the interview, Pompliano mentioned rumors of another possible $ 1 trillion incentive as part of growing debt in the United States.
After comments on the US government’s debt What essentially means inflation caused by money pressure, Lewis questioned the resistance of such activities. “How long can that take?” he asked about the ecosystem of debt and money pressure. As part of a cycle, Lewis explained that current trillion-dollar debt numbers will remain needed to support the ecosystem.
People will switch from cash to bitcoin
“The level of debt in the system and the level of leverage actually hold the system together, are a precarious balance, but actually hold the system together and cause it to break at the same time.”Said Lewis.
The system can reconcile quantitative easing, or QE, and money pressure, helping cash to maintain a solid value, depending on people’s need for dollars. Said Lewis. Nowadays, Current demand for the dollar helps cash keep its value, he said.
“Ultimately, over time, you will find yourself in a situation where the amount of dollars you have to continue to deliver to the system is decreasing in relation to the amount of debt, and people choose not to go to Bitcoin.”
So in return The exodus to Bitcoin reduces the demand for cash. If enough people go to BTC and demand for dollars drops, “this QE cycle will finally break.”Said Lewis.