Brian Armstrong, the head of Coinbase, shared with his readers why the coronavirus, combined with the monetary policies of different countries, favorably influenced the value of cryptocurrencies. What does Peter Schiff think about investing in Bitcoin and altcoins?

On March 3, the US Federal Reserve, which serves as the Central Bank, lowered its base interest rate to 1–1.25% (previously it was 1.5–1.75%). The adoption of this decision is due to the spread of the most dangerous virus on the planet, creating additional risks for activity in the economic sectors.

Armstrong is confident that this provides a good environment for investing in digital assets. According to him, the governments of different countries will begin to lower interest rates and cash emissions, as a result of which bitcoin and altcoins must certainly rise in price.

The fall of the stock market with a decrease in interest rates can cause a rise in the price of cryptocurrency in 2020. Governments of different countries are likely to begin to seek to stimulate the economy in various ways, including using quantitative easing and expanding the money supply. This Armstrong told his subscribers on the channel on Twitter.

He cited China as an example, whose authorities have already issued 137 billion dollars to support the economy. As a result, capital investments in digital assets will begin to protect against inflation. Armstrong noted that the situation in the stock market may affect the opinion of institutional investors on bitcoin. Probably, they will cease to consider cryptocurrencies a venture investment and will perceive them as a reserve asset.

Recently, Peter Schiff, an ardent supporter of gold, spoke out with a radically opposite opinion. He said that the rally Bitcoin did not enter the rally either after lowering the base interest rate, or as a result of volatility in the stock market. This calls into question the subsequent increase in the rate of cryptocurrencies, so it is necessary to get rid of it.

He noted that no one uses BTC as a currency. Investors have acquired tokens and are counting on its subsequent growth in order to sell more expensive. In November, another analyst, Ronnie Moas, criticized the US dollar and other national currencies. In his opinion, all of them are inferior to Bitcoin, since they do not have inflation protection due to the additional issue of money supply.