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Bitcoin was built for events like this

Bitcoin is, according to some, facing its first great test – whether it can perform as a store of value during a wider market crash, wrote Billy Bambrough in an article for Forbes.. 

Bitcoin has, by this measure, failed spectacularly. The bitcoin price collapsed in the face of coronavirus-induced chaos, losing around half its value as traditional markets recorded historic falls. 

But this isn’t make or break for bitcoin: the leading crypto’s success isn’t judged by its price but by its digital scarcity in a time of helicopter money, quantitative easing (QE) and record low interest rates. 

Earlier this week, the US Federal Reserve slashed interest rates to almost zero and fired a $1 trillion stimulus bazooka in an attempt to protect the world’s largest economy from a coronavirus-induced shutdown. 

This followed similar interest rate cuts around the world as governments and central banks scrambled to reassure markets. The rushed action largely failed, with the Dow suffering its worst day since the Black Monday market crash in 1987 and its third-worst day ever.

Today, US Treasury secretary Steven Mnuchin said he was poised to write checks to millions of Americans to try to offset the economic burden of the coronavirus pandemic – an unconventional economic stimulus measure that’s been popularized recently by some left-leaning economists as universal basic income (UBI) but was once known as helicopter money: freshly-printed cash that appears to drop from the sky into the pockets of the public (a concept some crypto investors will be familiar with).

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