Another positive news for Bitcoin was on the agenda. England has been known as one of the countries that have been leading the world economy for years. The coronavirus epidemic and the damage to the economy apparently pushed not only the US but also the UK to take very drastic measures. A current claim about the Bank of England may be a hot topic for Bitcoin (BTC).
In the report quoted by Bloomberg, it is emphasized that officials of the Bank of England started to talk about the negative interest rate. Indicating that the economy has entered a period of sensational uncertainty, experts stated that the UK will soon turn to negative interest rates. Many leading countries have either started implementing or signaled to do so. So why is this development seen as positive news for Bitcoin?
Wow, the Bank of England discussing negative interest rates. If they adopt this, they would be paying you to borrow. You couldn’t buy a better advertisement for #Bitcoin but u can take their money and go long bitcoin 😂🚀 https://t.co/Bjdos2Ml2l
— Tyler Winklevoss (@tyler) September 17, 2020
No Opportunity for Bitcoin
Tyler Winklevoss, co-founder of Gemini cryptocurrency exchange, explained the benefits of this situation for BTC. Winklevoss stated that if the negative interest rate is switched, the bank will have to pay people to get a loan. Winklevoss, who approached the subject in a humorous way, emphasized that he could take the money of the bank and open a long position for Bitcoin.
This actually means that the bank will no longer give interest to those holding fiat money, that is, it will not offer any return. This seems to push more investors to Bitcoin.