Coronavirus Update: Tim Draper says COVID-19 pandemic favors Bitcoin

The global economy has almost been brought to its knees following the COVID-19 breakout. Stock markets in the United States, Europe and Asia suffered a major crash in March as fear mounted across the world because of the virus. Due to lockdowns and restricted movements, the business continues to suffer. At the moment, an injection of $7 trillion is needed for recovery of the global economy. What’s worse is that this figure keeps rolling upwards by the day.

Bitcoin evangelist Tim Draper is among the people who believe that the pandemic and the crash of the global economy are key factors that would shape Bitcoin network innovations and mainstream adoption. As central banks keep on printing money for the said ‘economic stimulus,’ the produced bills would continue to decrease in value. However, Bitcoin offers a maximum supply, frictionless and open-source features that are viable alternatives to fiat money with less value.

This is going to be a really interesting time where people say ‘well, why don’t I just use Bitcoin?’ I know there are only 21 million of them and we don’t have to worry about whether a government is diluting their currency by printing tons of it, we can instead just use a currency we all agree on and it’s all a part of the economy and it’s already frictionless and open and transparent and global.

At the time of writing, Bitcoin is trading $7,361. It has accrued 2.19% in gains on the day after opening the session at $7,201. More upside action could see Bitcoin bulls establish support at $7,400 while maintaining the focus on $8,000.

Also read: Ripple Price Analysis: XRP/USD breakout above $0.20 short-lived, will $0.19 support hold?