Kriptokoin.com –Politicians from all over the world raided an unprecedented amount of fresh money to eliminate an upcoming stagnation or a worse possibility: an example of an example of economic depression. In the United States, the Senate approved an incentive package of $ 2 trillion in late March, and the House of Representatives has now accepted the democrats to print $ 3 trillion to print $ 3 trillion to alleviate the needs of Americans who are facing an unemployment rate of approximately 15 %. In an response to the COVID-19, the federal reserve adopted a unique wave of financial expansion on its history.
The FED used the “monetary expansion” option to add fresh liquidity to the economy. Since it has full control over the money printing, the Fed can print as many money as it wants and then inject the financial system by purchasing assets from the open market.
According to market observers, this movement of the FED reminds us of the post -economic crisis in 2008, when it brings a value of $ 1.2 trillion in just four months. However, the monetary expansion scale after the COVID-19 crisis shadows previous movements. Because the Fed did not limit the amount of money it was planned to inject into the system.
In the last two and a half months, the Fed purchased an asset worth $ 2.8 trillion. Unlike 2008, when the administration middle limited the recruitment of assets in order to secure US Treasury bills, this time, he also undertakes to purchase risky assets such as corporate and local government bonds.
What should be the expectation of crypto currency investors?
The US rescue money is expected to help public companies and prevent shareholders from losing their values. This new money is expected to increase the cost of assets, but most Americans do not have assets; Apparently the only result will be the weakening purchase power. LiquidApps CEO, Hakak, said that he saw the value of a value tank for Bitcoin (BTC):
“COVID Financial Crisis, Bitcoin’s first crisis as a class of assets, and some of them to perform a similar performance underneath, Bitcoin price was a decrease in the price of Kekskin. As the world economy began to open, BTC recovered quite calmly than S&P. It will be quite interesting to see whether it will be accepted as. ”
Monetary expansion etc. Bitcoin
Unlimited money printing, which takes place every four years; Bitcoin seems to be quite opposite to Bitcoin Halving, which halves the BTC supply. For crypto lovers, this proves Bitcoin’s “world’s most solid money” status. Bitcoin’s “scarce ür in a proven way attracts the attention of average investors and those who are concerned about inflation potential.
Famous for the transparency of the system and remaining outside the arrangements, Cryptocompare’s Product Manager Avi Rosten, a crypto data and research platform, said that the market is quite upward. Pointing out the high amount of insecurity in mid-March and the major fluctuation in the US stock exchanges between 12-13 March, Rosten said that they saw 11,000 transactions per second as Cryptocompare. Rosten said that everyone was from risky assets such as Bitcoin to the US dollar. He said that this was the best time he can prove his value for an asset like Bitcoin and he added:
“In addition to the excitement surrounding the Bitcoin Halving, we attract increasing interest due to record stock market volumes. In our April review, we have found that the second highest spot volumes in crypto history were seen.”
Although the US is at the center of the financial storm, other economies feel these problems. Recommended 3 trillion -dollar measures recently caused currencies such as Brazil Real, Mexican pesos and South Africa Randı to experience more than 20 %loss against the dollar since the beginning of the Coronavirus crisis.
The uncertainty following the collapse in the mid -March pushed Bitcoin to replace gold historically. While the markets are gradually coming out of their trenches, many countries are experiencing a second coronavirus wave and breaks during the recovery process are increasing.
Return to the 70s
Year 1973, the oil crisis sends a shock wave to global markets… Governments, especially the US, choose the method of printing money as a move of the labor market. Investors are trying to protect against rising inflation risk, rare commodities such as gold attract attention.
This definition of uncertainty in the 1970s fits enough of today’s climate. The ten -year period, which started with the US’s abandonment of gold standard completely; Although wages and economic growth follow a horizontal course, it ended with an inflation rate of 13.3 %in the country. The increasing combination of inflation and increasing inflation drew attention to the gold as a value store resistant to inflation.
Now, while Bitcoin halving with Halving, Fiat expands their supply of currencies. When the fears of inflation begin to emerge in the markets, beings with proven famine are considered well positioned. Quantum Economics Founder Mati Greenspan believes that after a large -scale monetary expansion, Bitcoin will maintain its future value due to its limited supply:
“Bitcoin; such as gold and silver, it serves as a protection against inflation. Therefore, if it leads to a possible inflation, it is possible that the values of Gold, Silver and Bitcoin against Fiat currencies and risk protection from risk is quite high.”
