Crypto Masterclass, featuring Don Guo.
Our Crypto Masterclass feature showcases a well-known thought leader or expert in the crypto space. In an email with Inside Crypto writer Rebecca Campbell, Don Guo - CEO of Broctagon, which focuses on multi-asset liquidity, brokerage, and blockchain solutions - shares his views on the rising price of Bitcoin.
"The government stimulus packages certainly have a role in this bull run for digital assets."
In Guo's view, the printing of money to deal with the current economic crisis brings down the value of fiat currencies. Additionally, with interest rates flat, savings are becoming an unviable way to produce returns. However, rather than turning to equities, which have a perceived risk while the lockdown continues, investors are finding themselves forced to turn to other investment opportunities. This is where cryptocurrencies come in, Guo says. He adds that it's not just COVID-19 that's at play here. The rise in Bitcoin's price also coincides with the May block reward halving event, which will see the number of newly minted coins rewarded to Bitcoin miners decrease from 12.5 Bitcoins to 6.25. With a reduction in the supply of Bitcoin entering the market, this will help to boost the price of Bitcoin, as will the added media attention and the positive impact this has will drive up demand for it.
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