Cryptocurrency Communications | The Potential of Bitcoin Amid Economic Stagnation Caused by the COVID-19 Pandemic [Oohira]

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FX trading history since 2009 and cryptocurrency history since 2015. Leveraging cryptocurrency investments and prior experience, currently distributing cryptocurrency information on major newsletter sites and investment sites. Participates in a large number of individual investor networks and shares knowledge gained from many investors. Running a cryptocurrency investment information site for beginners since 2016.

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※This article is a reprint and re-edit of an article from FX攻略.com July 2020 issue. Please note that the market information written in the main text may differ from the current market.

Countries Implement Large-Scale Fiscal Policies

In the previous article, we shared a forecast for the cryptocurrency (digital assets) market in 2020. From February 2020 onward, the world has seen a sharp rise in infections and deaths from the novel coronavirus. In addition, unemployment is rising, businesses are closing, and many operations are moving to remote work, resulting in an economic slowdown.

In light of this situation, countries around the world are launching large-scale fiscal policies centered on cash payments. Going forward, increases in fiat currency through cash disbursements will lead to inflation (the value of money falls relative to goods), and non-fiat financial assets such as cryptocurrencies may gain in value. This article will explain those details more specifically.

As a side note, in Japan, two masks are distributed per household. There is also consideration of cash payments to all citizens. As the economy slows due to fewer people employed in capitalist systems, the government issues its own currency to secure citizens' livelihoods.