Biden do even bigger stimulus | Bitcointalksearch.org

Sithara007

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Quote from: 2double0 on February 08, 2021, 12:51:13 PM

Are the Americans capable enough to go out and ask their government for the breakdown of all the stimulus they have sent and cross-verify it till the whole balance sheet tallies? Impossible. So wherever it will go, it will depend on the interest of people who will be the deciding factor for buying btc because it is too high and now looking favorable for institutions only, and I think they will not FOMO in.

This never ending cycle of stimulus and the unlimited printing of banknotes without any restriction will destroy the purchasing power of fiat currency. Once the politicians indulge in freebies, they can never go back. Because the population will demand better and bigger freebies next time. Tesla management has become the first company to convert a part of their cash reserves to Bitcoin/gold and in the future I expect a lot more companies to do the same. It is very simple. These companies no longer trust the US Dollar.

OROBTC

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...

My best guess is that the stimulus packages will not work (or at least well) in the short term. While some will be spent by the poor of course, there will be a lot of that stimulus money paying down debt and/or saved. The two latter actions REDUCE money velocity, which is one component of whether there is inflation, lower money velocity is DEFLATIONARY.

The people are now in shock over the bad economy and its prospects. Many of us (inc. me) are going to spend LESS in coming months, already are. But, deflation can be beaten by determined governments and central banks by aggressive printing of more and more money. In the words of the last head of the European Central Bank, when questioned about avoiding deflation he said:

"Whatever it takes" (to avoid deflation, which is very bad for governments)

But, such aggressive printing to kill deflation very often leads to hyperinflation later.

TL;DR

I expect some sort of deflation period to then be followed by high inflation or even hyperinflation with the Biden stimulus packages.

PonZZ

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Quote

So if USA keep printing and keep giving out stimulus we are all good.
I hope that after this stimulus will push btc up there will be more stimulus rounds to go.

It's theoretically right, but I don't think a lot of people will invest their checks in Bitcoin, most of them need this money to survive.

teosanru

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Quote from: cryptoboss2020 on January 21, 2021, 02:25:09 PM

That's not bad for bitcoin
Its very good to btc hodlers whos not located in USA but hodling the btc.
So if USA keep printing and keep giving out stimulus we are all good.
I hope that after this stimulus will push btc up there will be more stimulus rounds to go.
First 3 T i hope it can be nice warm up! And I hope USA will contunie this stimulus tradions!

Any little helps for btc price to go up

Practically stimulus would never end obviously it's the very necessary requirement of any economy in normal circumstances. But do you have any specific statistics on the effect of this stimulus on the overall price of bitcoin? I think this slight stimulus which isn't like even 1% of the total supply could have a huge effect on the price of BTC. Often the impact would be so minuscule that it would get absorbed in the huge waves that bitcoin is having these days. Stimulus by govt. is pretty different from Bitfinex printing more tether. Also as all the major currencies these days are paired in USD and have international loans outstanding which are to be repaid in USD all these countries and citizens of these countries will be affected by the prices too.

2double0

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Quote from: Sithara007 on February 07, 2021, 11:12:20 PM

People don't think about the long-term impact, when they get their welfare cheques. Anyway, most of the stimulus funds are going to end up with the big corporates (similar to what happened after the 2008-09 recession). The only difference is that the entire debt burden is added to the future generations, while the corporates don't have to pay back any of that money. The common people will suffer from the devaluation of their assets as well. As the governments print banknotes like crazy, the value of bank deposits and other assets will go down proportionately.

Are the Americans capable enough to go out and ask their government for the breakdown of all the stimulus they have sent and cross-verify it till the whole balance sheet tallies? Impossible. So wherever it will go, it will depend on the interest of people who will be the deciding factor for buying btc because it is too high and now looking favorable for institutions only, and I think they will not FOMO in.

el kaka22

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Inflation happens when everyone has excess amount of money that they can spend so prices of things get higher and higher. When you do a stimulus and everyone barely has any money and they spend it on things they can barely afford right now but common things otherwise, stuff like groceries or bills they have to pay or rent, those things do not cause inflation at all.

You have to realize that inflation is only caused when there is excess amount of money, there isn't excess amount of money anywhere right now, all the money is basically "gone" right now, and people are unemployed or even starving, so having that extra stimulus is definitely not something we could argue right now, it is definitely something everyone needed and it will be used for things that are needed and not things that are luxurious, hence why it won't lead to inflation at all.

zanezane

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Quote from: charlesmichel1 on February 07, 2021, 11:50:50 PM

The upcoming stimulus bill will likely have a positive effect on Bitcoin, but it won't be beneficial for the US economy and may lead to hyperinflation.

No, it won't lead to an inflation but if they continue not addressing the situation of printing money, a collapse is imminent. In short term, there won't be an inflation but that will just be a temporary fix, what USA needs to do right now is to have their people listen to the people that knows better in the pandemic, with more people not following the guidelines to prevent the further spread of pandemic then the further they go far from opening the economy without worrying about the virus. I do agree with the stimulus, definitely a lot of people who missed out on buying on the first stimulus will have to get in while bitcoin is still not that fairly high.

charlesmichel1

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The upcoming stimulus bill will likely have a positive effect on Bitcoin, but it won't be beneficial for the US economy and may lead to hyperinflation.

Sithara007

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Quote from: 2double0 on February 07, 2021, 05:38:04 PM

Lol I don't get where are they getting all these money printing orders from? And when they are doing this, isn't it a debt that is being levied on innocent people's head? When this stimulus circus ends, what will happen? The people who invested in btc today will start pulling out fiat by converting their btc and this will not be good for the price in long term.

People don't think about the long-term impact, when they get their welfare cheques. Anyway, most of the stimulus funds are going to end up with the big corporates (similar to what happened after the 2008-09 recession). The only difference is that the entire debt burden is added to the future generations, while the corporates don't have to pay back any of that money. The common people will suffer from the devaluation of their assets as well. As the governments print banknotes like crazy, the value of bank deposits and other assets will go down proportionately.

2double0

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Lol I don't get where are they getting all these money printing orders from? And when they are doing this, isn't it a debt that is being levied on innocent people's head? When this stimulus circus ends, what will happen? The people who invested in btc today will start pulling out fiat by converting their btc and this will not be good for the price in long term.

jossiel

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Just recent news on the house that there will be another 'smaller' stimulus checks that are on their way. That's around $1,400 per beneficiary.

House gives final approval to budget plan including Biden’s $1.9 trillion stimulus, fast tracking the process.

And that means that we're going to have a pump soon?

jacafbiz

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This is why we have mega rally last year, we are going to see influx of these money into the space this year, anyone still doubt if he can make money from the space this is a huge signal to join the train now before the train start. If people are comfortable investing into Dogecoin of all Altcoins, just imagine what would happen when they know Cryptocurrency better

cryptoboss2020

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Hyperinflation comes of Old money and new money reaction.
Like a Cold and hot makse thunderstorm.

Kakmakr

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You know.... all these stimulus boosts, looks like a farmer stuffing a pig with food to fatten it up to eat a bigger animal later. The US government are giving this in the hope that it will stimulate the US economy to a level where they can once again increase the taxes to a much higher level, where they can eat huge meals at a later stage. Roll Eyes

A weaker US Dollar will just hurt the global economy, because a lot of the struggling third world countries are also using the US Dollar and they are just going to struggle more now. (Zimbabwe is one of those countries) Roll Eyes

On the other hand.. a lot of them are going to start buying Bitcoin, because they will anticipate a economic collapse in the future and they will be looking for a safe haven like Bitcoin.

BrewMaster

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it is all the money that the previous administration minted and now they are (as i have said many times before) slowly entering circulating and eventually contribute toe the inevitable inflation that the US dollar is going to experience.
but this is not a US specific case. the rest of the countries have been doing the same crazy thing for the past year. they keep printing a lot of money and hand it out to try and reduce the effects that the pandemic had on the economy. eventually all contributing to the inflation.

Kocret02

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Quote from: Twentyonepaylots on January 21, 2021, 04:28:23 PM

Yo, hyperinflation is imminent if the US kept on printing money and not paying debts, so bitcoin may not be affected, but countries who are dependent to America will be. And with this the world economy will be in shambles as USD is a major anchor of most currencies in the market. So you still would have tp worry.

Printing too much money will only make the US a country that has a devastated economy, but we will not be worried that if the USD fails, it seems that there is already a substitute for another currency that is ready to replace the USD to establish relations with all countries in the world

giammangiato

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Quote from: cryptoboss2020 on January 21, 2021, 02:25:09 PM

That's not bad for bitcoin
Its very good to btc hodlers whos not located in USA but hodling the btc.
So if USA keep printing and keep giving out stimulus we are all good.
I hope that after this stimulus will push btc up there will be more stimulus rounds to go.
First 3 T i hope it can be nice warm up! And I hope USA will contunie this stimulus tradions!

Any little helps for btc price to go up

It looks that Biden insidation in the white house could increase our gain with BTC, I hope in the increment of liquidity. If everything will go in the right way we can see BTC ate $ 100k before the end of the year! Long live to Biden economy and btc pump

figmentofmyass

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they're gonna jack up our taxes, and then throw us back some crumbs in the form of a stimulus check---great! Roll Eyes

Quote from: The Sceptical Chymist on January 21, 2021, 05:01:56 PM

OP, you really seem to be fixated on all this stimulus money the US is giving out. Are you even a US citizen?

if stimulus money pumps the price of bitcoin, i guess it doesn't matter where he lives.

even if not many people put their stimulus checks into bitcoin, dropping helicopter money on people removes pressure to sell off their investments. that pumps all markets, including bitcoin.

suzanne5223

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Biden stimulus may and may not impact the Bitcoin market cause some individual in the US may follow the footstep of the institutions by using Bitcoin as their reserve fund or asset since the stimulus provided by the President was to provide help to the eligible or vulnerable Americans who are per food and safety provision for workers on their job.

cryptoboss2020

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Quote from: fiulpro on January 22, 2021, 02:48:24 PM

I don't know really understand how USA is able to print so much money , maybe they are using all their supplies and securities that they had and now I genuinely thought that it would for sure stop at the second or the third but it continues to baffle me.

Will the price of the dollar fall?
Will people invest it into bitcoins ?
Will the stimulus reach the homeless people too?

There are certain websites which do provide a detailed idea of if the person qualifies for a stimulus or no at the same time we have not seen a significant improvement in the COVID cases in the US. They still have to work hard towards that , maybe give people masks and sanitizers with the stimulus. Don't know really why people hate masks there though.

A small quote from a website :

Quote

Citigroup says U.S. dollar may drop by 20% next year on vaccine push. The dollar is likely to begin a drop of as much as 20 per cent in 2021 should COVID-19 vaccines become widely distributed and help to revive global trade and economic growth, according to Citigroup Inc.

This is to be expected for sure. We don't know really how far this will drop to.

Let's not worry about this the fed knows better what they do it.
Also they keep inflation on 2% level if the inflation reach to 2% or over they stop printing...

First People dont know how the btc price come then they Say also wrong things about money and simple things!!

Omg how bad the schools have prepared People!

Topic: Biden do even bigger stimulus (Read 325 times)