Jay Hao: "US financial stimulus measures will lead to BTC growth"

CEO of the OKEx cryptocurrency exchange Jay Hao believes that financial incentivesThe United States will lead to an increase in the rate of bitcoin.

Hao noted that after the end of MarchThe US Federal Reserve has allocated more than $ 2 trillion to deal with the effects of coronavirus, Bitcoin has risen to $ 10,400. OKEx CEO also quoted a recent Bloomberg article stating that President Donald Trump’s administration plans to spend another $ 1 trillion on restoration American economy.

Head of OKEx believes that these measures will becontribute to the growth of bitcoin, since there is a high probability that citizens will spend the received payments on the purchase of the first cryptocurrency. Small companies will also be willing to invest more in bitcoin. In addition, Hao mentioned a study according to which the investment company Grayscale Investments buys bitcoins 1.5 times faster than they are mined after halving the award, and this directly reflects the level of acceptance of BTC by institutional investors.

However, for the most part the growth of the first cryptocurrencyretail investors who will want to increase profits from their savings will contribute. In the case of bitcoin, the likelihood of making tangible profits from savings is much higher, since the interest on bank deposits is very low. In addition, as an alternative to bitcoin, Hao called stablecoins, which can be placed on a savings account at a high percentage.

Naturally, a massive shift to digital assetsIt will not happen instantly, but Hao expressed confidence that over time, more and more people will invest ordinary money in stable cryptocurrencies. The current economic situation is not conducive to savings deposits and bonds, but they can still be useful. For example, if retail investors are worried about the consequences of inflation and do not want to leave their money in the bank, savings bonds and certificates of deposit, if they do not make a profit, will at least give a guarantee of payment for inflation.

At the same time, the head of OKEx recommendedAvoid traditional low-risk investments, such as long-term treasury bonds, since today many of them have negative returns. Instead, you should pay attention to gold, the value of which usually grows during economic crises. Hao said he expects an increase in the cost of gold after another US financial stimulus. At the same time, Hao emphasized that diversification of investments is of primary importance, and there is no need to focus on only one asset.

To recap, in November OKEx launched Bitcoin futures contracts settled in the Tether (USDT) stablecoin, and in December the exchange introduced daily-settled Bitcoin options.

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