The Fed’s Money Printing: A Big Deal for Bitcoin
This month, Bitcoin enthusiasts found themselves with goosebumps after the U.S. Federal Reserve whipped up more fresh money than the entire market cap of Bitcoin. Yes, you read that right! With the Fed’s balance sheet ballooning to almost $4 trillion, it’s like a giant party where Bitcoin wasn’t even invited.
What’s the Big Number?
As highlighted by crypto commentator Dennis Parker, the Fed has injected a whopping $210 billion into the economy since mid-September. This is part of a resurrected quantitative easing (QE) strategy—an economic stimulator that sounds like a fancy cocktail for the financially inclined.
- Total Bitcoin market cap: $148 billion.
- Fed’s increased balance sheet: from $3.77 trillion to $3.97 trillion.
The Charm of Fixed Supply Assets
In a world where paper money grows on trees—metaphorically speaking, of course—those holding assets like gold and Bitcoin aren’t just a little twitchy. Their entire investment philosophy is based on the idea that these assets don’t face inflation like fiat currency does. The more money the Fed prints, the louder the chorus grows to invest in cryptocurrencies.
Crisis Warnings from the Establishment
Parker’s call for investors to buy Bitcoin comes just as conventional financial figures are raising the alarm bells. Mervyn King, the former Bank of England chief, recently warned at an IMF gathering that the world is “sleepwalking” into a financial catastrophe that could be nastier than the 2008 meltdown. Yikes!
“By sticking to the new orthodoxy of monetary policy and pretending that we have made the banking system safe, we are sleepwalking towards that crisis.” – Mervyn King
Bitcoin’s Tenure: A Remarkable Run
Let’s not forget Bitcoin itself. As it turns ten, it is proudly waving its flag, having lasted 40% of the average lifespan of a fiat currency. While some poke fun at it for being volatile, Bitcoin aficionados argue its endurance showcases its potential longevity as a future currency.
The Bitcoin Standard and Monetary Policy
Amidst these discussions, Saifedean Ammous’ book, “The Bitcoin Standard,” continues to make waves. First published in March 2018, it argues that the interventionist economic policies prevalent today are leading societies down a destructive path. So, with the Fed’s recent moves, is it time to take Ammous’ warning seriously?
Conclusion: Buckle Up, Bitcoin HODLers!
As the Fed continues on its money-printing spree, Bitcoin advocates are left guessing how this will impact their investment. Will Bitcoin rise as a safe haven or will it falter amid market volatility? Only time will tell—just make sure to hold on tightly to those digital coins!
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