Topic: How negative interest rates affect Bitcoin (Read 725 times)

People who usually avoid negative interest rates and look for ways to secure investment value, prefer gold/silver than crypto. The crypto community that is in the stock investment class is still small, considering that bitcoin fluctuations are a wrong way to secure value. The impact of negative interest rates is not too big, what we need is the adoption of blockchain technology first.

Basically government has the capability to present information in their way, but the fact that individual knows how to spread the real information personally, it is much trustworthy since media is also known as deceiving. Basically it affects the bitcoin price, since the reputation of bitcoin decreases, the same thing happens to the number of adoption it has.

in my opinion bitcoin will continue to rise along with the good news that continues to spend, bitcoin is now slowly starting to rise maybe 2017/2018 events will recur.

The crypto market is indeed very sensitive and easily played by many whales. and fomo made people follow the trend at the time. and regarding the question op is the negative interest rate in the world. For me the effect is not included in the price of cryptocurrency to make it go up or down

Negative is very useful. Thanks to it, people better remember information, because it is negative, it carries a greater emotional charge, which contributes to the imprint in memory. As a result, when the situation changes in a positive direction, people change their attitude, because they are already familiar with the subject.
It is already obvious that the market is controlled not by the crowd, but by whales. So, if necessary, it will be possible to create stronger FOMO, which, against the backdrop of all the general awareness of cryptocurrency, will take its effect on the minds of ordinary people, inciting them to buy even at dubious prices.

The declining of negative interest rates of fiat money has a positive effect to the world of btc and altcoins. Why it is so? Because of negative interest rates it distresses the investors since the fiat is repeatedly lessen the value by the banks.

And the cryptocurrency and btc are not same with fiat, the crypto cannot be maneuver by anyone or anything for the reason that it is firmly day by day has limited output. No one can create more because it has limitations.
Also because the crypto is a trend today, I think more investors will choose crypto since it proposes supreme substitute for savings with indemand technology.

In short, these negative interest rates that OP were saying will stay as long as the Government are badmouthing it to the public, but it doesn't affect the bitcoin price at all, only the adaptation is at risk in this case, the slow bitcoin adaptation, the more bearish market we are going to have in the future. We will not move forward until we overcome the huge wall in front of us (the Government) unless they will finally destroy that wall to let us pass through.

Higher low interest if bitcoin rates still down, maybe old investor is not worried about how drop bitcoin price, for the new investor re thing what have he does because is not good ideas for investing in bitcoin and afraid bitcoin will be down. Low interest because price of bitcoin still lower and higher interest when bitcoin up.

Negatives rates are from years.Meanwhile bitcoin was pumped and dumped.Bitcoin has his own rhythm
But of course .Any massive QE will support bitcoin price rise same like is supporting any emerging assets and market

Negative interest depend on how bitcoin price years by years, with always lower bitcoin just take time for less interested by investor and move looking other investment kinds for their investment assets, now when bitcoin still profitable maybe many investor have big interest with bitcoin for investing or trading.

I don't think this nonesense with negative interest rates will even work. People will simply stop using the bank and as you say they will invest in precious metals. Not only will that take them out of negative debt but into positive. Remember that will inflation you need to be making 5-6% on your investment just to break even and retain the same value. All that will happen is new banks will open that hold gold instead of fiat which basically means we going all the way to the beginning again and where this rabbit hole ends noone knows.

I think negative interest rates will affect crypto currencies positively because as countries give negative interest, people will keep their money away from countries. No investor will let own money melt. Moreover, crypto currencies are safer than banks and countries, and they cannot be traced. Considering these facts, I'm almost certain that negative interest rates will positively affect bitcoin and crypto currencies

Wait wait, in this situation I think we discuss about scenario similar of this: National currency which hugely depends on USD, falls and NatCur/USD exchange rate increases a lot, usd rises for national currency. From this point negativity rises and this affects further situation of national currency in a very negative way, people buy USD cause no one wants your national currency (it falls and isn't something that you can hold on).
So how does same situation can't affect bitcoin? Of course it affects but at the same time there is hope in bitcoin too which sometimes rises. People use lows to buy as much as possible and then have huge hope that it will rise and that happens too cause everyone wants rise instead of further fall. Also halving affects price a lot where mined bitcoins are reduced and in our fiat reality money printing is increased.

If everyone starts purchasing products for credit and if they are not able to repay those in time, what happens to the economy. If the interest rate is negative it is cheaper to purchase something through credit rather than shelling your money, the problem happens if there is no control over the process as you will end up in a crises but it is good for the financial market as people will be ready to spend more.

Eventually they should realize that central banks cause more harm than good whenever they do something. They think that when they print money to keep the people going they are doing something good but they are just allowing people to spend the money they don't have and then that money is printed so the money exists.

If central banks didn't then eventually a lot of worlds economy would collapse everything will be horrible we would be in economical dark ages but eventually whoever survives that will lead us into a world where banks are no longer greedy or can be greedy even if they wanted to because they would collapse and bankrupt if they do.

Just let banks bankrupt and jail the CEO's for letting it happen and you will not have any more scammers there, the power resides in the central banks to make that happen, only if they do not help the banks out. There are customers whose money get bankrupted as well? Customers who can provide proof of ownership will be reimburse by the central bank, that way banks will still go bankrupt, new money still would be printed and all the regular people would be saved.

I don't think negative interest rate will have any negative impact on the bitcoin, since bitcoin is not dependent on such market model to strive. Bitcoin is on a different class. It should rather have a positive impact on the bitcoin, If because excess fund should be allowed to flow to bitcoin market.

Negative interest rates act as a simulator for banks to give their excess reserve as loans rather than keeping it with central bank of the country. The concept is more evident in developed countries like Japan and Switzerland. In developing countries like India, central banks pays interest upto 5-6% when it receives fund from commercial banks but in case of developed countries, commercial banks have to pay to central bank to keep their money.
Therefore, banks are more inclined to give money to general public than central bank.
I don't see any direct impact of this on Bitcoin but since negative rated instills economic growth, it may have indirect positive impact on investments like Bitcoin.

Negative interest rates are temporary for this reason: the banking system can't make a profit if the entire yield curve is negative.

Did you see what happened to Japanese bonds yesterday? Kuroda (the governor of the Bank of Japan) decided that the central bank would not buy any more government bonds with a term greater than 25 years (to reduce demand and thus increase yields). He is trying to steepen the yield curve. The 10 year Japanese bond auction went really badly and yields shot up along the curve and then this spread to Europe.

I think this is a harbinger to come: central banks are finally realising that they are causing more harm than good in buying bonds. If they abstain from buying, yields will go positive.

I doubt negative interest rates will really affect BTC that much, more so the regular markets. I could definitely see negative impacts coming from this for investments like gold and sliver, but probably not such a new thing, there's nothing really to affect.

A lot of "correlation" we've seen over the past couple of years isn't all it seems, how BTC works is actually very, very unique, and I've only seen 1 clear-cut example of something affecting the price of BTC, which was when the media pumped BTC all the way up to 20k, pretty amazing stuff.

Here in our country we experience a high inflation rate, and I’m glad that I used bitcoin to many transaction and investment. Negative interest rate is really the conflict in investing money in the bank. But due to negative interest rate, the demand in bitcoin will increase and also its price and value.

When the time comes that the inflation rate goes high, other investors will seize the opportunity to buy a lot of bitcoin because of the decrease in its demand.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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

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

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

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.

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.

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.

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.

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.


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.

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. 

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.

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.

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 ?