Hxro co-founder and president hedged his bets but mainly thinks the public expects more stability.
Rob Levy, the co-founder and president of crypto prediction market Hxro – pronounced as “hero” – determined that the cryptocurrency industry looks forward to a transition of power in Washington and the stability it can bring.
“I think, in general, the Democrats taking control is seen as friendly for crypto,” he said, only hedging his forecast lightly.
“We saw at the end of December [US Treasury Secretary] Mnuchin coming out with some more harsh words for Bitcoin and crypto in general,” he said, likely referring to “rushed” rule-making by the Financial Crimes Enforcement Network that requires large transactions to the crypto wallets needed to be recorded and/or reported to FinCEN.
“We’re not going to be thrown curveballs like that, in the minds of the public, with Democrats running the US. And so that, in general, is friendly.”
Hxro is a gamified market that allows users to bet if an asset price goes up or down in a given amount of time. Levy, who sees his users react to political developments in real-time, has come up with some predictions about what Dem control means for American’s checkbooks and also for oversight of the apolitical US Federal Reserve.
The Democrats set to embrace a liberal fiscal policy and “are more apt to push through bigger stimulus checks,” Levy suggested. Although a proposal from December 2020 to send $2,000 to most Americans failed in the Senate, it can be revisited on how the Democrats set to take control of the upper chamber.
Fiscal policy measures are tailored toward putting more money into citizens’ pockets and goes hand in hand with central bank efforts to increase the money supply.
“This whole monetary policy of easy money, it’s not going away,” he said.
“This policy of…we’re gonna buy all assets, the Fed’s gonna buy government bonds, they’re gonna just flood the streets with money, it’s not bearish for any asset, really.”
And not to mention, Bitcoin.
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