The pro-Bitcoin 2020 US presidential election candidate, Andrew Yang wants to pay every adult American a universal basic income (UBI) of $1000 a month, and this would likely be very bullish for bitcoin price.
Yang, who will run as a Democrat candidate, is a self-described “serial entrepreneur” and “opposite” of current president Donald Trump.
His social support scheme, funding for which is currently a hot topic of debate on social media, he has called the ‘Freedom Dividend.’
“Universal Basic Income is a policy where every member of a society, in this case, every American citizen, gets enough money to meet his or her basic needs,” Yang explained in a promotional video uploaded on CNBC March 21.
“So in my plan, the Freedom Dividend, every American adult turning age 18 would receive $1000 a month free and clear to do whatever you want.”
The scheme would naturally involve increased money printing. This would inflate the money supply even further and likely cause prices to rise.
In turn, bitcoin price would likely rise as well since its supply is hard-capped at 21 million. According to Gresham’s Law, bad money would drive out good money, which in this case would be bitcoin that people would be incentivized to hold as a store value against a constantly depreciating currency like the US dollar.
Yang has a history of embracing innovative economic concepts which have until now broadly remained confined to niche areas of society.
Among those, in addition to UBI, is cryptocurrency as a mainstream financing tool. Yang has publicly mentioned Bitcoin and his affinity for it since at least 2013, while last year he began accepting cryptocurrency payments for his presidential campaign.
Unsurprisingly, then, the UBI proposal drew wide praise from the cryptocurrency community on social media.
Yang gained the support of Max Keiser, a serial Bitcoin bull who remains highly critical of US debt-driven economics.