If central bankers make money printer go BRRR again, Bitcoin should logically rise
The Federal Reserve’s Jerome Powell and the ECB’s Christine Lagarde are the two people everyone will be watching in the coming days and weeks. Can we bring back our favorite cryptomeme (money printer go BRRR) since they will apparently be printing extra dollars and euros again? If that happens, it normally sends Bitcoin higher.
Bailout for banks
Bitcoin was created in response to the banking crisis of 2008 and 2009. The unknown Satoshi Nakamoto included a title from the Times newspaper in the first block of his Bitcoin blockchain that has become legendary.
Chancellor on brink of second bailout for banks.
13 years ago these words were stamped in the Genesis block of the #Bitcoin blockchain:— Blockstream (@Blockstream) January 3, 2022
“Chancellor on Brink of Second Bailout for Banks”
It was the start to the peaceful revolution that has changed millions of lives, and soon will change billions of lives
Thank you Satoshi. pic.twitter.com/WUwKZQr5h6
Satoshi didn’t want his money to lose value and came up with a solution.
Since the amount of Bitcoin is finite and only 21 million will exist, the price normally rises each time there is more of a rival asset in the same class, in this case fiat money.
The more dollars and euros, the lower their value actually becomes. For Bitcoin, this is reversed. Anyone wanting to arm themselves against inflation has now seen how stable Bitcoin has been during last week’s banking crisis.
The European and American governments are forced to intervene in the current financial system to save banks, which is very problematic in the long run, especially if they are simultaneously trying to get the current sky-high inflation to the desired 2% level.
More and more investors are therefore speculating that Bitcoin may offer a solution to this. Bitcoin’s price has risen sharply during the recent banking crisis.
When QE officially restarts, Bitcoin has only one way to go, which is up. This time, the Fed has been smart enough not to call QE really QE, but rather the “Bank Term Funding Program” (BTFP). Bloomberg said it better, according to them it was just: QE in another name.
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