Bitpush Exclusive | Tim Draper: The 2 Trillion Will Likely Not Hit Economy In Time, Bitcoin is the Safe Haven Holding

U.S. is becoming the new epicenter of Coronavirus pandemic. As of Friday evening, there are more than 100,000 confirmed cases, 1534 death. According to the Department of Labor, initial jobless claims soared to a seasonally adjusted 3.28 million in the week ended March 21, the highest since 1967. Presisent Trump signed 2 trillion stimulus package. Is this effective to save U.S. economy?  In the interview with Bitpush, legendary investor Tim Draper thinks the 2 trillion will likely not hit economy in time.

Bitpush:  Will Fed's action and 2 trillion stimulus package not only help economy recover but also devalue U.S. dollars in the long run?  This is not a financial crisis created by credit crunch but a pandemic caused crisis. Is it smart for Fed to do whatever it takes at this point?

Tim Draper: I am seeing a lot of government overreach. That $2 trillion will be held up by bureaucrats, and will likely not hit the economy in time to help much. If they really wanted to make a quick and fair impact on the economy and didn’t want to play favorites, they should just give us all a tax holiday.

Bitpush: Is there any possibility that U.S. falls into a severe recession?  How do you evaluate U.S. economy after 11 years' expansion? 

Tim Draper: Yes. If the government keeps us in for more than another two weeks, you won’t see the economic V everyone is talking about, you will see an economic slump that could prove worse than the virus.

Bitpush: Will U.S. stock market recover soon after the pandemic?

Tim Draper: That would be nice. But earnings reports are not going to be healthy, so I suspect that the market takes another hit before it recovers.

Bitpush: Will Bitcoin bounce back much faster than stock market? 

Tim Draper: My only Bitcoin prediction is that by 2022 or early 2023, I predict Bitcoin hits $250k per Bitcoin.

Bitpush: Will Bitocin halving in May drive crypto currency to a bull market ?

Tim Draper: Probably, but the halving is just half the story. If the dollar slips in value because the country is printing so many of them, and people know they can’t buy stuff for gold anymore, Bitcoin is the safe haven holding.

Bitpush: Is now  the perfect time for investor to buy no matter  Bitcion or U.S. stock? 

Tim Draper: Bitcoin yes, US Stocks, probably not.

Bitpush: What’s impact of the pandemic on crypto industry?

Tim Draper: When everything is fine, people don’t want to change anything. So the status quo wins in a bull market. Pandemics, like any cataclysmic event makes people wake up and look for new alternatives that might be better, cheaper, faster than what existed before. So I am optimistic that consumers will adopt many of the new technologies that I have been excited about. That includes Bitcoin, artificial intelligence, blockchain, smart contracts, and machine learning, and how they transform banking, insurance, health care and government. 

I know I recently played a VR escape room game, and it opened up my mind to many new ways of being entertained and educated. I have been taking meetings with Zoom and Skype, and I realize how efficient that can be. I think people will start using Bitcoin when they realize that their government is devaluing their fiat currency to bail out the victims of the lock down. People are starting to recognize that Bitcoin is more honest, more frictionless, more fungible and more valuable than Dollars or Pesos or Naira or Drachma.

(image from Pixabay)

Author: Susan Feng

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