The wild ride of 2020 continues.
After what has been a crazy year in almost every sense of the word, businesses are left wondering how to proceed, Ripple Labs CEO Brad Garlinghouse said.
“The pandemic is throwing so many playbooks out the window,” he posited in an Aug. 28 tweet. “Yesterday’s action flies in the face of decades of precedent,” he said, pointing toward an Aug. 27 article from the Wall Street Journal on the U.S. Federal Reserve choosing to keep interest rates low at the possible expense of higher inflation.
“Signs point to further dollar debasement in the near term (leading to further diversification of assets which will certainly be good for crypto),” Garlinghouse added.
Since the beginning of COVID-19 fears and prevention measures in March, the U.S. economy has been flipped on its side. High jobless claims, money printing, business closures and a plethora of other factors have created a giant puzzle when it comes to uprighting the struggling scene.
Interest rates and inflation hold as two tools the U.S. government has fiddled with as part of its attempted solutions. Although problems remain, a possible outcome might be further Bitcoin adoption as a viable hedge, noted by a number of participants in the crypto industry.
Comparing the asset with gold, seen as long-time store of value hedge, Gemini crypto exchange co-founder Tyler Winklevoss mentioned a possible scenario in which Bitcoin hits $500,000.