US President Joe Biden has rejected a Republican proposal for a COVID-19 bill that would have allocated $ 618 billion to US households and businesses struggling.
Biden and newly appointed Treasury Secretary Janet Yellen dismissed the amount – just below the size of Bitcoin’s full market cap – as insufficient to boost the economy amid the ongoing pandemic, Reuters reported.
Democrats voted along party lines in the US Senate on Jan. 2 to push through Biden’s bill, which would more than triple the amount proposed by the GOP to $ 1.9 trillion. Senate leader Chuck Schumer told reporters with less, the country would manage the crisis for too long. Referring to the GOP’s original $ 618 billion proposal, Schumer said:
“If we did such a small package, we would be in the COVID crisis for years.”
On the same day, the House of Representatives took a partisan vote on the renegotiation of the emergency; Democrats won 216-210, with no Republicans pledging their support.
The Federal Reserve printed more money in 2020 than the nation spent in it first two centuries of existence; total American debt nearly $ 28 trillion at time of writing. That leaves the country with a debt ratio of over 130%, the highest in its history by a wide margin.
Some argue that the Fed’s money-printing practices ultimately benefit Bitcoin by creating real fear, uncertainty and doubt about the US dollar. Gemini cryptocurrency exchange co-founder and CEO, Tyler Winklevoss, has previously expressed the view that the Fed is essentially prime numbers Bitcoin for a bull run every time it prints more money.
But even a bull run may not be as bullish as it may seem. The number of dollars created in 2020 equaled almost one fifth of all the dollars ever printed. This inflation effective robs Bitcoin and other associated cryptocurrencies of its purchasing power as they are still valued against the US dollar.
Biden’s proposal for an aid package represents a significant reduction in the initial $ 3 trillion sum he first proposed in early January. Whether such efforts to boost the economy will raise the price of Bitcoin is largely the subject of speculation, but it’s worth noting that the coin’s value has risen early 700% since the start of the COVID-19 pandemic.