Topic: How negative interest rates affect Bitcoin - page 3. (Read 716 times)

It is hard to keep making more and more money, there is a limited amount all around the world and a country that is doing well in economy like for example Germany would not be capable of doing that forever, you are taking in money from other countries more than you give and that would mean eventually all countries will be debited to you and that is not really sustainable, eventually they would fail to pay you (aka Greece) and that is why you will be still paying more than you earn since what you pay is actually paid while what you should earn is not given to you fully which causes a net debt in reality while profit on paper.

Bitcoin comes into play here a bit, you can get paid in bitcoin if you want and that would increase the price of bitcoin and you can just hold it as an investment instead of taking a loss from unpaid debts.

Although we don't know for sure the impact on Bitcoin, one thing is sure: developed economies are stagnating and the pace of innovation is decreasing.
Negative interest rates are a form of nudge to stimulate investment, pushing towards higher risk and higher return, instead of negative yields.
BTC and other cryptos are not correlated with the performance of traditional financial assets, making it a possible attractive investment for a diversification strategy.
It can serve as a safe asset that cannot be seized, which is a key features in a multi-lateral world in turmoil (trade wars, proxy wars, sanctions).
Since BTC is decentralized and not bound to the performance of a specific economy, it's likely to be more appealing than ever.

We can't say for certain if the worldwide crisis will have a positive impact on crypto. Because the market is still young and traditional investors would rather go to where their money is really safe, let's say precious metals like gold.

Back in 2017, put stocks market and bitcoin has a massive year, coincidence?

So we will if if the worsening crisis around the world would bring people into bitcoin and boost the price as others may have suggested.

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.

The reversal of interest rates only shows that investors / speculators are trying to keep the market stable or some people try to make the market decline.
I know that history has experienced many times of recession and economic crisis since interest rates have been reversed, but the US will not let their country be degraded during the war with China.
The Fed has just lowered its interest rate by 0.25% and on September 18, I think FED will continue to lower interest rates to expand the money.
After FED's adjustment, Bitcoin will certainly not be affected because no recession will take place here.

The negative will come and go and bitcoin will remain, even if it is going to affect it, it won't kill it. It is just going to be a temporal thing like we saw after 2017 that it was said bitcoin is a bubble. But then, after the Fud, bitcoin got to $14,000 just recently.

I think bitcoin will be affected amazingly from this, but the problem is its not getting that famous all over the world, only the countries where government is doing something about inflation is getting those and not all countries, there are still 150+ countries with positive ones including some with 5%+ interest rates as well. That is why I do not see a lot of big changes since the ones that are getting good amount of money anyway with interest rates would be close to equal with the ones that actually have negative ones and they would cancel each other out.

If negative interest rates were something so common and so problematic people would have put all their money into bitcoin to make more of it and get away from losing their money but that is not happening any time soon.

If people would know, they might invest their money with bitcoin as long as they are also willing to take the risk.
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.

Negative interest rates has not happen in my country yet but if it will, I know where to invest my money.

It actually encourage people who have room to invest on hodling more the asset rather than spending it. With interest getting higher you will see that people tend to try to dispose assets in order to have quick cash which in turn decreases a lot of value for that asset, that price drop alone for the eyes of an investor sees an opportunity for them to invest more. If Bitcoin is somehow affected by high interest rates then expect for a lot of hodlers to  dispose some or maybe all of their position making BTC's price lower this will create a window of opportunity for a lot of investors/believers to buy more of them at a cheaper price.

Anytime when you are afraid to and You do panic sell... Then think about If your asset is so risky Why someone always will buy it from you?

Markets are run by 2 factors.  
Fear and Fomo!!  


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.



Will the btc Price Goes up?
Yes If the Money is invested through investment platforms like a binance, polo,  coinbase.

Right Now the volumes are low it means capital is entering into crypto space all ready but its not recorded its off the records through OTC.  


Remember one thing :

Bitcoin and even gold price are both manipulated the gold has no value so as no Bitcoin has no value either!  


The Gold and Btc value comes Only what are the buy/sell orders on exchangers.

If i buy gold or btc from my neighbour with price of 5000 $ then nobody dont know that and it does not have any influence over the Global market prices. Its just like a OTC deal.



In the history the OTC schemes are used when some investors want to get something with better price Before the actual bull market Will star t

The thing you've said was right but these markets are entirely different to each other.So I don't see a point or importance for them to be differentiated.
Back to topic about interest rates then Bitcoin haven't being considered by the masses and as said this one is also different with gold and silver etc.

I'm actually very conservative when it comes to the geopolitical tensions and their *assumed* impact on Bitcoin. I strongly believe that most of the correlation that we have seen so far is pure coincidence.

People within crypto are cherry picking just to help them justify their bullish narrative, while they purposely discard all the non correlated moves we have had in the past. It's somewhat understandable but looks a bit silly.

Back in 2018 no one said a word about how stocks greatly outperformed Bitcoin, while this year's bull run has been put against stocks in the way that they suck as an investment and Bitcoin is superior....

Negative interest rate can booster private sectors just as it can boost bitcoin. The negative interest rate is a tactical approach by the bank governing body of a countries to foster good economical growth, banks are also in the option of diving into bitcoin because of negative interest rate but the interest has to be there before hand.
In conclusion it can propel bitcoin price upward

Gold is strong When money is cheap!
But if the bubble will  pop then the Gold investors will lose  most!

Its not about wich Investment is safe... Its a bout right time!! 


When You buy the wrong asset at the wrong time You will lose!! 

At the economic regression the Fiat currency has the biggest value again.


Best hedge is to invest into risky assets When the money is cheap and sell them When the bubble is about to pop!! 

You Can lose your money even When You lnvest into gold.


No any Material assets on the Earth Can not protect You from economic problems!! 


Best asset is your knowledge and education.


Before You try to be investor You should read and do some self education first!! 

Majority of the impact of the negative interest rate will go to precious metals like Gold or silver and not to bitcoin. because precious metals are being used as a tool to safeguard capital since ages and bitcoin just came into the picture just 10-11 years ago. People are not yet accustomed with this high-tech virtual currency. It's easier for them to invest in gold. Obviously we have few handful percentage of population who will prefer cryptos over gold, but they are super minorities!

Just see the link below and you will get an understanding that how the gold price in moving up in the international market.

https://goldprice.org/gold-price-chart.html

Bitcoin has not yet become a preferred choice of the mass!

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 ?