How negative interest rates affect Bitcoin - page 2.

teosanru

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Quote from: Michael71 on August 13, 2019, 07:13:15 PM

Negative interest rates are spreading all over the world, and it seems this trend is here to stay.

How do you think it will affect Bitcoin value in the long term ?

Will Bitcoin rise because negative interest rates are just another form of money printing ?

The negative interest rate is not here to stay definitely. It's just a momentory scenario as the economy adjusts itself these negative interest rate will be gone. But yes for the time being things could change but I don't think BTC would get much of an advantage from this because people still think it of an Ponzi or get rich quick scheme for those who have spare money to throw away somewhere. Equity markets could get more investment and so could bullion but Cryptocurrencies ain't getting that. We need to convince the actual utility of Cryptocurrencies before we can actually expect them to enter this market.

abhiseshakana

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Negative interest rates are interest rates in percentages below zero per year, which are applied by the central bank with the aim that commercial banks channel their funds to the public, rather than depositing money in the central bank alone. The purpose of the negative interest rate policy is to overcome deflation and low economic growth rates.

If there is deflation in a country, currency values usually strengthen, awareness of savings is high, and people are more frugal but this is bad for business because income from the business sector decreases, high unemployment, investment, stock prices, and tax rates decline.

What is the effect of negative interest on Bitcoin?
For investors and individuals who are literate in the benefits of the digital economy, surely they will see this as an opportunity to invest in bitcoin (digital assets). The tendency if stock prices plummeted in the price of gold and bitcoin will strengthen as when a trade war between China and the US occurred.

Brunus

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The negative interest - which is absurd from a historical and economic point of view - is ultimately nothing but a tax on deposits, therefore an invitation not to hold firm capital.
But I don't see any particular effects on bitcoins: no matter how high the negative interests may be, they cannot stand comparison with the volatility of the crypto world.

RealMalatesta

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I didn't even know negative rate was even possible let alone to think that it would create an economical problem.

At one hand you have a country with negative rates so people HAVE to spend their money on something and earn more of it which would increase investments from rich and create a bigger economy for the country, but on the other hand if you try it as a not so first world country than you can have people buy foreign currency and keep that as an investment instead of investing into business or what which would take money out of your economy.

That is why I think in order to pull off a negative rate you have to be a great economy and need to make sure people won't leave you for another currency, Germany and USA may achieve that but you can't expect Venezuela or Zimbabwe to do something like this.

auntyjmary

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The world's economy has become highly unstable in recent years and it seems the negative interest rates can affect the price of any commodity. Hence It can possibly affect bitcoin in this modern times where every news can easily cause an upset in economics.

Pab

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Negative rates are supporting bitcoin price increase because people who are holding money in banks are receiving less interest
It doesn't count to keep money in fiat and watch how hidden inflation are eating them
If people have some knowledge about crypto then much better is invest money in to btc
It is only slogan that inflation in for example Europe is low.Inflation is low on paper but cost of life are rising

yoseph

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Quote from: Michael71 on August 13, 2019, 07:13:15 PM

Negative interest rates are spreading all over the world, and it seems this trend is here to stay.

How do you think it will affect Bitcoin value in the long term ?

Will Bitcoin rise because negative interest rates are just another form of money printing ?

As long as all the negatives interest rates and talks are not about cryptos, there is really no need to worry at all, I have noticed a trend where people starts to doubt banks, they end up buying cryptos.This is a very common occurrence in my country since most banks are being shut down becuase of a so called financial sector cleanup by the central bank.

semobo

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The word negative interest doesn't looks familiar for me so I guess this is something not to be related with the crypto currencies yet.If this is about lending the bitcoins then there is not regulated or government approved organization will do this since it is impossible to calculate the value of the loan and what collateral they need to collect for issuing this loans.

Polo7

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I Think There is impact for the Price.
Instutional investors Will Not invest funds that come from their own hard work.

They Will Get free money to invest into bitcoin Federal reserve Will create money from thin air.

juperos

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Negative interest rates do not lead to economic crisis situations, do not worry.
only when the US, China and other great powers have war problems, trade is stagnant, those things lead to economic crisis.
In the current situation, bitcoin will certainly not be affected and the future is very unpredictable.

fulled

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I think its not gonna have big impact for bitcoin and cryptocurrency in general, it will have big impact for assets like metals and real estates

Polo7

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That's thanks to Trump who doing great job.
USA markets bullish now.

But rate did cut rates btc Price is Still very Low 10k for btc is low it should be at least 15k

TelolettOm

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Quote from: MonsterV on August 20, 2019, 01:46:28 PM

Quote from: bitmover on August 19, 2019, 01:27:27 PM

As interest rates go lower and lower, investors will seek more returns elsewhere.
But there is a limit to that demand for more risk, as interest rates is a low risk investment. Probably ETFs of the biggest index funds are the more probable investment alternative.

thats right, when interest rates fall then investors will look for returns elsewhere, but whether these investors will invest in bitcoin. In fact not all investors will trust bitcoin, there are many of them who invest their money only in recognized investments. Because the average investor is part of another Warren Buffett.

This is just my personal opinion. actually those who have invested in bitcoin or other altcoins on average understand very well about investing and they already have at least other choices besides cryptocurrency as an investment option to be able to benefit. so the main choice is not in crypto. these are from some people I know and we share with each other about investments. so although there is an effect of a decrease in the actual interest they already have a way of each portion in putting an investment

MonsterV

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Quote from: bitmover on August 19, 2019, 01:27:27 PM

As interest rates go lower and lower, investors will seek more returns elsewhere.
But there is a limit to that demand for more risk, as interest rates is a low risk investment. Probably ETFs of the biggest index funds are the more probable investment alternative.

thats right, when interest rates fall then investors will look for returns elsewhere, but whether these investors will invest in bitcoin. In fact not all investors will trust bitcoin, there are many of them who invest their money only in recognized investments. Because the average investor is part of another Warren Buffett.

Febo

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Quote from: Michael71 on August 13, 2019, 07:13:15 PM

Negative interest rates are spreading all over the world, and it seems this trend is here to stay.

How do you think it will affect Bitcoin value in the long term ?

Will Bitcoin rise because negative interest rates are just another form of money printing ?

Negative interests rates will increase value of real estates. Low interest rats already increasing it in past. So influence on Bitcoin is that Value of Bitcoin in realeastate will decrease. Or to buy realeastate you will have to spend more Bitcoins.

Distinctin

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On less developed and underdeveloped countries, they usually experience this negative interest but since there's an alternative like Bitcoin, I think it would help.

However, it's not easy as we think because they will surely weigh the risk between bitcoin and putting their money in the bank, if the negative interest is not that big, then maybe they'll still choose to put their money in the bank than put in BTC where price is very volatile and that requires regular monitoring to ensure they can make the right decision in the event BTC will have a significant dump, of course no deposit can afford to watch their money in BTC falls 50% in just a week or a month.

samcrypto

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Quote from: Michael71 on August 13, 2019, 07:13:15 PM

Negative interest rates are spreading all over the world, and it seems this trend is here to stay.

How do you think it will affect Bitcoin value in the long term ?

Will Bitcoin rise because negative interest rates are just another form of money printing ?

If there’s a negative interest rates then investors will put their money on gold, silver, stocks or even in cryptocurrency. With regards to bitcoin, there will be no major effect because of so many investment option. Bitcoin needs to become more stable, and maybe investors are still afraid with bitcoin so we can’t sure if they will transfer or not. There’s a lot of things that needs to be improve with bitcoin, we have a lot of time to go.

Swordsoffreedom

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Quote from: celot on August 16, 2019, 12:15:44 AM

Negative interest will make rate and bitcoin price own, but how to build an interested from investor with connection bitcoin and government or big companies in the world.

What kind of spam is this?? Looks like machine-generated random combination of keywords. Will report the post but I wanted to quote it first.

Quote from: Polo7 on August 14, 2019, 04:09:18 PM

...
Bitcoin and stocks prices are driven by panic selling and Fomo.
Good example is Brexit many investors had fear and they sold their stocks panic selling.

Now If no Deal Brexit then the investors sold their assets for cheap Money.

Brexit is most likely not going to happend.
It was just the way to con small investors out of assets.

Now i predict that UK will cut rates too to make stocks go high and to buy up whole stock market with cheap Money.
...

Brexit is uncertain but I wouldn't say it's not going to happen. Especially now with Boris Johnson as leader of Tories, it's more and more likely.

1Referee

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Quote from: freedomgo on August 15, 2019, 01:08:05 AM

Bitcoin has been a savior for countries with high inflation, and the more demand is created, this will lead to bitcoin to be more stable and it will become an attractive way to combat the negative interest rates.

It definitely doesn't make Bitcoin stable. I don't think anything other than plenty of liquidity is able to do so.

The thing with more demand in a certain part of the world in case it steers the price up, is that investors in well developed economies have an incentive to dump it back down because their profit target is met. Not everyone is in for the very long term; institutions and the more rational investors are perfectly happy with 50-100% returns, while people here aim at 500-1000% returns because they believe they're entitled to it. Roll Eyes

Also, Gold historically has been dumped back down the moment the global economy starts showing signs of improvement. This, if Bitcoin is actually being used as safe haven, will happen to Bitcoin as well.

bitmover

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Negative interest rates certainly drives more money to metals and more risky investments, such as stocks and cryptocurrencies.

As interest rates go lower and lower, investors will seek more returns elsewhere.
But there is a limit to that demand for more risk, as interest rates is a low risk investment. Probably ETFs of the biggest index funds are the more probable investment alternative.

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