After a crazy year in almost every way, companies are wondering how to go about it, said Brad Garlinghouse, CEO of Ripple Labs.
“The pandemic is throwing so many game books out the window,” he noted in an August 28 tweet. “Yesterday’s action runs counter to decades of precedent,” he said, referring to an August 27 article in the Wall Street Journal on the US Federal Reserve that decided to keep interest rates low at the expense of higher inflation.
“The signs point to further short-term devaluation of the dollar (leading to further asset diversification, which will certainly be good for crypto),” Garlinghouse added.
Since the COVID-19 fears and preventive measures began in March, the U.S. economy has been turned on its side. High unemployment claims, money pressures, shop closings, and a host of other factors have created a huge puzzle when it comes to improving the struggling scene.
Interest rates and inflation are two tools the US government has been playing around with in its attempt to resolve the issue. While problems persist, one possible outcome could be further adoption of Bitcoin as a viable hedge, which has been noted by a number of participants in the crypto industry.
Tyler Winklevoss, co-founder of Gemini Crypto Exchange, likened the asset to gold, which is seen as long-term storage for value protection, and mentioned a possible scenario in which Bitcoin hits $ 500,000.