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The spread of Coronavirus has had massive effects on the economy. The results are comparable to those of the 2008 financial crisis. However, these effects are likely not to affect Bitcoin. This is according to the U.S. Congressman Tom Emmer. 

The Representative was speaking to Pomp Podcast hosted by Anthony Pompliano. He believes that the pandemic is forcing the world into looking for alternative investment options. For now, Bitcoin has proven to be the ideal investment. Most investors are fleeing possible inflation after the virus. 

The Federal governments and other central banks have provided stimulus packages over the pandemic. Even though they are to sustain the economy, they can lead to inflation when the system recovers. Bitcoin remains a safe haven.  

"As we come out of the crisis, Bitcoin ain't going away." He said during the interview. "It's gonna get stronger." He also talked about people's eagerness to take risks. "You just watch the coin, it has value.

The value of Bitcoin and that of other safe assets have been rising in recent times. With its value, people are going to take risks." With many people taking the risk, the coin will advance even further.

The Congressman also pointed out the current mainstream Bitcoin improvements. One of such developments is the U.S. regulators authorizing banks to provide custody for cryptocurrencies. He believes such growth will bring the crypto world to mainstream use. 

Emmer has been of crypto support for some time. He criticized the modern centralized monetary system during the show. 

He supports minimal government involvement in the crypto world. The government should up its game in looking for the digital dollar. He calls for more transparency from the Federal Reserve in its pursuit of the central digital currency. 

The lawmaker has relentlessly pushed the government to take advantage of the crypto opportunities. He has recently co-signed a letter to the Internal Revenue Service (IRS) concerning crypto development. They want the body to adopt a Proof of Stake (PoS) technology. He believes this is one of the best ways to take advantage of the new systems. 

Still, there have been security concerns when it comes to using crypto. This comes in the wake of Twitter hacking. The hacker targeted top Twitter accounts to advertise Bitcoin scams. 

Several people lost Bitcoins in the process before Twitter brought it under control. 

Emmer feels the breach is not a Bitcoin issue. 

He had earlier tweeted in support of the crypto. He then reiterated the comments on the podcast supporting the crypto. "Twitter's the one that screwed up. Bitcoin didn't screw up." He claims it is Twitter's security that is not adequate. However, people still want to go all out on the coin. 

The Twitter hack has also brought into the fray the issue of centralization. A single person controlling the whole system makes it vulnerable to other mess-ups. There are always going to be bad guys, and that makes an individual control an issue. Emmer used the example of the coronavirus started in Wuhan. 

The fiat currency allowed the government to lock everything in Wuhan. Nobody would travel or shop without government control. It means the government has all the say on how people lead their lives. He said, "The government has your currency all on a card."

He believes that Facebook's Libra is a good step towards the liberation of currency. However, some people are already seeking control. He understands that in a centralized system, a few people determine value. Yet it affects so many people. It means only those who make decisions get to benefit. 

Lastly, crypto is in the right direction. The government only has to play an enabling role. Otherwise, everyone can police themselves. He understands how significant the task is. Still, the greatest roles are what bears the highest results.

Effects of Corona on Crypto Markets 

For now, almost all experts agree Bitcoin will improve. The declining economy comes with the right tides for the crypto world. The other matter of interest is the effects on the markets. One concern that comes with a crisis is the reduced available investment funds. Coronavirus is no exception. Most people would prefer basic needs and only invest in certain assets. 

So far, crypto has been the to-go-to investment. While the other assets have been devaluing, Bitcoin has been improving. Even though it had earlier declined, it recovered to reach new heights. It hit the lows of $3000, only to go past the $10k mark. It beat its resistance levels in the process. It is currently trading at around $12k. These are high levels with hopes of even more to come. 

The other reason for a soaring Bitcoin is the declining dollar. The dollar has been on the downward spiral for some time now. The more it goes down, the higher the Bitcoin's value becomes. The trend is likely to stay on for some time. It would take some time for the economy to recover from the corona effects. Possible inflation also spells doom for the economy. 

The corona pandemic has also made the need for security dire. Most consider Bitcoin a safe haven. It has performed well as the "digital gold." Given the upward movement, it is gaining more trust in the market. The high liquidity of the coin is another positive. 

Unlike the fiat currency, Bitcoin has no central authority. One can sell or buy the coin at will. This makes it ideal as a backup asset. The high liquidity also means one can quit anytime. Evading any possibility of downfall is quite easy. 

Bottom Line 

The improvement of Bitcoin has been massive. Congressman Emmer's assertions are in line with that of the other experts. They believe the coin will keep on rising as the economy declines. The security and decentralized nature of the currency makes it ideal. Still, anything is possible in the world economy. Bitcoin is still volatile and can change in value. 

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