Topic: Money printing (Read 514 times)
Yes, the Fed is going to save you.
Ignoring the current sillyness going on with the bitcoin price I wanted to discuss the effects of excessive money printing on the bitcoin price.
The US is currently printing $85billion USD a month in Quantatative easing, if I was the banks receiving this free money, why wouldn't I invest some or all of it into an asset that cannot be artificially increased like bitcoin. I mean any bankers that did this would come out with far more purchasing power than the ones that just kept holding USD that are continuesly worth less and less.
So given it makes financial sense for bankers to convert their newly minted USD into bitcoin, lets assume all of them start doing it. It makes sense, that way no one is left behind.
So $85B a month is $2.7B a day, divide that over the 11M current bitcoins in circulation and that works out to about $254 dollars a day the BTCUSD exchange rate needs to increase to accommodate all this new money.
Let me repeat that.. thats $254 a DAY increase in price of bitcoin. Our recent high was only worth 1 days money printing.
Lets not forget that bitcoin is a global thing, so we can add Japans $60B a month too.. so that would take the daily increase to $433 a day.
Bitcoin is here to save us from the unlimited printing of fiat.. Everytime bitcoin holders sell for USD with the sheep causing the exchange rate to drop you are assisting Helicopter Ben and making it harder for bitcoin to succeed in its goal.
The US is currently printing $85billion USD a month in Quantatative easing, if I was the banks receiving this free money, why wouldn't I invest some or all of it into an asset that cannot be artificially increased like bitcoin. I mean any bankers that did this would come out with far more purchasing power than the ones that just kept holding USD that are continuesly worth less and less.
So given it makes financial sense for bankers to convert their newly minted USD into bitcoin, lets assume all of them start doing it. It makes sense, that way no one is left behind.
So $85B a month is $2.7B a day, divide that over the 11M current bitcoins in circulation and that works out to about $254 dollars a day the BTCUSD exchange rate needs to increase to accommodate all this new money.
Let me repeat that.. thats $254 a DAY increase in price of bitcoin. Our recent high was only worth 1 days money printing.
Lets not forget that bitcoin is a global thing, so we can add Japans $60B a month too.. so that would take the daily increase to $433 a day.
Bitcoin is here to save us from the unlimited printing of fiat.. Everytime bitcoin holders sell for USD with the sheep causing the exchange rate to drop you are assisting Helicopter Ben and making it harder for bitcoin to succeed in its goal.
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