The United States has entered the era of helicopter money, and the era of Bitcoin is coming. Don't miss it.

According to some, Bitcoin is facing its first huge test-whether it can serve as a store of value in a broader market crash.

The United States has entered the era of helicopter money, and the era of Bitcoin is coming. Don't miss it.

Image credit: Pixabay

From this perspective, Bitcoin has failed. Faced with the chaos caused by the corona virus, the price of bitcoin plummeted, and due to the historical decline recorded in the traditional market, the price of bitcoin fell by about half.

But this is not a success or failure for Bitcoin as a whole: Bitcoin's success is not judged by the price of Bitcoin, but by digital scarcity during helicopter helicopter money, quantitative easing (QE) and record low interest rates .

Earlier this week, the Federal Reserve cut interest rates to zero and issued a $ 1 trillion stimulus monetary policy to protect the world's largest economy from a massive shutdown caused by a corona virus.

Prior to this, similar interest rate cuts were made around the world as governments and central banks scrambled to release water to ensure market security. This hasty action largely failed, with the Dow suffering its worst day since the Black Monday market crash of 1987 and the third worst day ever.

Today, US Treasury Secretary Steven Mnuchin said he is ready to send checks to millions of Americans to offset the economic burden of a coronavirus pandemic. This unconventional economic stimulus has recently been widely adopted by some left-hand economists as Universal Basic Income (UBI), but was once called a helicopter to throw money: newly issued cash is like falling from the sky into the public pocket (A concept that some cryptocurrency investors will be familiar with).

"We are considering sending checks to the Americans immediately. Americans need cash now, and the president wants to find gold now-I mean within the next two weeks," Mnuchin said at a White House press conference.

Elsewhere, Spain is apparently weighing a similar helicopter-spending-style stimulus that could cause severe damage to the economically integrated eurozone.

Many traditional economists don't like the way helicopters sprinkle money. They say removing it from the system is more difficult and could lead to a spike in long-term inflation.

Due to the lingering effects of the 2008 global financial crisis, central banks around the world were forced to consider this extreme option, although many of their less aggressive policy tools are still effective.

"The United States will soon indulge in this helicopter to throw money," Anthony Pompliano, co-founder of hedge fund Morgan Creek Digital, said on Twitter.

At the same time, some market observers are concerned that a broad sell-off coupled with helicopter money-spending proposals could lead to a cash surplus.

"At the moment, we are seeing an unprecedented shift to cash in the market," said Marty Greenspan, founder of financial consulting firm Quantum Economics.

"Everyone is liquidating everything. Once the dust settles, we start to see how the ending of the" coronal virus crisis "looks and people will be restless."

The latest currency offering provided by the Federal Reserve to the market is a special fund that can maintain the flow of credit in the US economy during the corona virus panic. Today's situation has satisfied investors.

At the close, the Dow Jones, S & P 500 and Nasdaq were all up about 5%. This news has not shaken Bitcoin's trend in the slightest. Bitcoin has been hovering around $ 5,000 since the stride last weekend.

"Bitcoin was built for these crisis events," said Keld van Schreven, co-founder and managing director of blockchain investment company KR1.

"Bitcoin, Ethereum and other crypto networks don't need to bail out or QE. They only need a few servers to run, verify and complete transactions. Bitcoin, Ethereum and other crypto networks have put the weakest link (That's us) excluded. They are more powerful. "

Regardless of the price of bitcoin, neither the central bank nor the government can artificially increase its price-only increased demand can support price increases.

We also cannot print or paste Bitcoin from the clipboard. Regardless of the extreme volatility of its price, Bitcoin will still maintain its certainty in an era of uncertainty.