• Several US cities including Austin, Philadelphia, and Santa Clara have been handing out cash to lower-income earners to understand the economic implications.
• More American investors amounting to over 54 million have taken the initiative to accumulate Bitcoin in a bid to beat the high inflation.

The United States Federal government has been in the spotlight for handing out money to its citizens in the name of economic boost. During the COVID-19 global pandemic, more than $5 trillion was printed and handed to organizations and US citizens to cushion them from the economic slowdown. As a result, the United States dollar has continued to be devalued on the global scale in regard to other currencies.

Moreover, more countries have opted to join hands with Russia and China to strengthen the BRICS movement in a bid to free themselves from the U.S. dollar dependence.

As of publication time, the United States inflation is about 5.5 percent, as the Biden administration continues to pump more money to fund Ukraine against the Russians. Meanwhile, Bitcoin is counting inflation of about 1.70 percent and is expected to drop to 0.84 percent next year after the halving event.

US Cities Blows Money to Boost Local Economies

Several United States cities have been undertaking free money handout programs in a bid to understand the effects on the economy. For instance, Philadelphia announced the launch of a pilot study in August dubbed Guaranteed Resources Optimize Wellbeing (GROW) to understand how additional resources can improve personal economic status.Executive Director of the pilot program, Mitchell Little, noted:

What we have learned, however, is that the best way to eliminate poverty is to provide people with resources with no strings attached. This project reinforces our commitment to being guided by listening to, supporting, and including communities while working collaboratively to foster greater economic mobility,

Notably, the GROW pilot program is expected to issue about 51 recipients about $500 per month in the next 12 months from its inception compared with $50 issued to 239 people in a control group.

In mi-August, the County of Santa Clara, the Board of Supervisors allocated about $2 million from the American Rescue Plan Act (ARPA) fund for a $4 million Guaranteed Basic Income (GBI) Pilot program for justice-involved individuals. In total, the County of Santa Clara has allocated about $12 million to help participants stabilize their economic status.

Elsewhere in Austin Texas, the city council approved a budget of about $1.3 million to continue with the universal basic income programs in mi-August.

Why Bitcoin?

The United States government remains a major stakeholder in Bitcoin with over 150k that was seized from different raids including from the Silk Road darknet marketplace. More often, the US government conducts Bitcoin auctions, which offer whales a chance to acquire Bitcoin at a possible discounted rate.

Nonetheless, the US government has not airdropped the coins to people like El Salvador did after it adopted the top coin as legal tender.

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