- Coinbase CEO Brian Armstrong expects several factors to boost the crypto industry in 2020 significantly.
- Slowing global markets will result in central banks making extreme moves in the upcoming months, inadvertently endorsing crypto.
- Factors like interest rate cuts, quantitative easing and market repurchase agreements have attracted investors to the crypto space.
Brian Armstrong, CEO of Coinbase, says that the crypto industry will benefit from the increasing aggressive fiscal policies across the globe. He said that slowing global markets would result in central banks making extreme moves in the upcoming months. In response to such attacks on wealth, the CEO predicts the capital to move into crypto markets. In the past, on several occasions, fiscal policies have ended up endorsing Bitcoin and other digital assets inadvertently. Factors such as interest rate cuts, quantitative easing, and market repurchase agreements have attracted investors to the emerging asset class.
Armstrong tweeted:
A down stock market and interest rate cuts may lead to growth in crypto this year. Governments around the world are likely to look to stimulate the economy in any way they can, including using quantitative easing and expanding the money supply (printing money).
As an example of such harsh policies, he cited the recent Federal Reserve interest rate cuts. The US central bank shook the markets recently through the emergency measures that were meant to stimulate against a potential economic downtown linked to the Coronavirus outbreak. He also discussed the recent significant Chinese liquidity injection of about $173 billion. He hopes that investors will soon change the perception of crypto.
This could be the year where the mindset of institutional investors begins to shift, from crypto as a venture bet, to crypto as a reserve currency.
This tweet of Armstrong’s received some backlash from the community for his usage of the word “crypto.” The term is extremely generic and may be used to collectively describe the >3000 digital tokens floating around in the market. Armstrong’s followers suggested that he should have used to word “Bitcoin” instead of “crypto.”
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