Tim Draper : the injection of money will not save the economy

14 April 2020 by Antoine

While the pandemic of the sars coronavirus is in the process of collapsing the world’s two biggest economies, that is to say, the United States and China, Tim Draper argues that crypto-currencies are involved in the salvation of the planet.

Money creation is not the solution

The injection of liquidity as advocated by the united states government has been seriously called into doubt by Tim Draper, in the sense in which this mechanism would be in vain and will not help revive the economy.
The reasoning that it advance states that the money supply circulated in the economy would not have a significant impact in a long-term period.
He has stated in this regard :

“They’re going to print all this money to try to recover the economy after the have essentially reserved. They are going to inundate a lot of money, and this money will be worth less, and less, and less. “

But while the United States government is located at the foot of the wall, Draper sees in the situation a huge opportunity for crypto-currencies, specifically for the Bitcoin and intelligent contracts.
People could, according to him, finding comfort in Bitcoin because of its fixed offering, which is limited to the number of 21 million. People will therefore not have to worry about a potential glut of assets that would result in the loss of its value.

Towards the end of the globalization ?

For the moment, no analyst is not yet possible to predict with accuracy the outcome of the current crisis, however, the opinions converge towards a conjecture of the decline of globalization, so that the economic landscape will not be the same that we had known for over 25 years now.
The Blockchain, which is the technology underlying Bitcoin, the artificial intelligence and intelligent contracts, is built in the master to initiate financial innovation, which will drive governments to compete in this new virtual world.
The latter will be obliged to provide the best service to users, and at a lower cost.
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