Printing money and calling it "Stimulus" has somehow taken the centerstage in the name of financial stability. Basically it is the governments way to ensure that people keep working for paychecks and remain blissful in order to keep consuming. There has to be a balance between this expansionist spree of developed economies and the requirements for a viable, happy lifestyle. When there is no balance, the whole circus comes under threat with any upheaval, like COVID-19.
How does Bitcoin help that? I think the answer is pretty much that it doesn't. It just gives the people like us a choice to have our own economies sans borders and regulations meant to keep you restricted and the wealthy protected. Whether the people that are actually running our societies and economies are themselves going to change is an entirely different question. Too much investment has gone into the current setup of capitalist, profit-seeking, constant growth markets. This is unlikely to change due to bitcoin.
Topic: so if the fed printing money and btc goes up genius idea here (Read 221 times)
December 12, 2020, 07:00:36 AM
Things like these I mean the posts like these are the ones that I cannot understand. I do think you should try and elaborate more and in a clear way.
I do think you know that Fed and Bitcoins are polar opposites, even though they are connected this connection is actually something that crypto can survive without. For example, the fed continued to print excessive money and at the end if value of USD decreased drastically, do you think we will still peg the value of cryptocurrencies like bitcoins against USD ? No , I do think we can very easily start using a more stable currency like Euro for example. The current situation in the USA is deplorable since people have no idea what's to come, this will soon make the value of USD nil.
I do think you know that Fed and Bitcoins are polar opposites, even though they are connected this connection is actually something that crypto can survive without. For example, the fed continued to print excessive money and at the end if value of USD decreased drastically, do you think we will still peg the value of cryptocurrencies like bitcoins against USD ? No , I do think we can very easily start using a more stable currency like Euro for example. The current situation in the USA is deplorable since people have no idea what's to come, this will soon make the value of USD nil.
I think you dont have enough Sense of humor
December 12, 2020, 01:59:29 AM
The more they print, the more supply of fiat increases which means inflation. If they don't the whole economy still collapses. The currency which exists in accounts and system is higher than which exists currently in hard form. One of the reasons why BTC is rising in price is because the value of fiat is depreciating.
December 11, 2020, 01:26:49 PM
I think you got it wrong. Our current economy is very complex and there are a lot of moving parts that need to be balanced. We don't have a perfect economy, but it is a working model. Though there are a lot of people who live in poverty, some of them even die from starvation. So although the global economy is "working" to a certain extent, it is far from being a perfect economy of something like that even exists.
Bitcoin could be the solution for a radical change at a worldwide level.
Bitcoin could be the solution for a radical change at a worldwide level.
December 11, 2020, 01:18:25 PM
Things like these I mean the posts like these are the ones that I cannot understand. I do think you should try and elaborate more and in a clear way.
I do think you know that Fed and Bitcoins are polar opposites, even though they are connected this connection is actually something that crypto can survive without. For example, the fed continued to print excessive money and at the end if value of USD decreased drastically, do you think we will still peg the value of cryptocurrencies like bitcoins against USD ? No , I do think we can very easily start using a more stable currency like Euro for example. The current situation in the USA is deplorable since people have no idea what's to come, this will soon make the value of USD nil.
I do think you know that Fed and Bitcoins are polar opposites, even though they are connected this connection is actually something that crypto can survive without. For example, the fed continued to print excessive money and at the end if value of USD decreased drastically, do you think we will still peg the value of cryptocurrencies like bitcoins against USD ? No , I do think we can very easily start using a more stable currency like Euro for example. The current situation in the USA is deplorable since people have no idea what's to come, this will soon make the value of USD nil.
Microstrategy its up to something
At first, I was like what crap is this but by the end of your post I understood what your sarcasm meant 
On a serious note, feds printing money (for whatever reason) is just decreasing USD value and will definitely increase Inflation.
The side effects of such huge printing of money out of thin air will soon be realized as inflation kicks in and everything becomes more costlier.
Bitcoin is not increasing in price as pooya87 said, instead the fiat money is sinking in value.
On a serious note, feds printing money (for whatever reason) is just decreasing USD value and will definitely increase Inflation.
The side effects of such huge printing of money out of thin air will soon be realized as inflation kicks in and everything becomes more costlier.
Bitcoin is not increasing in price as pooya87 said, instead the fiat money is sinking in value.
Often wondered how it would be when it “happens” not fully understanding how slow it is “happening”.
Why would the fed print too much money when they obviously know how it will impact the economy and the value of their fiat? The people will just suffer from great inflation when they do that, and the money will be useless so what's the point of receiving free money. The fed is there to control the monetary system and I don't think that they are stupid enough to go and print so much money just to give it to everyone. Also, take Venezuela as an example since they are suffering from hyperinflation, and one of the alternatives they use is bitcoin, but it doesn't necessarily mean that btc will directly increase.
Few words: budget deficit, the public debt, cost of debt maintenance, treasury bond, impact of increasing profitability of treasury bond on cost of debt, the risk of uncontrolled appreciation of the currency against other currencies and its impact on the country's economy, lockdown and its impact on the economy, bailout of behemoths like beowing.
Add it all together and you are doomed to print. Doomed to destroy current monetary system in next century. There is no way back. You have to print more and more and more. There is only one way out of it. "
we are bankrupt, we delete all our assets and start from scratch" but no one has balls to do it publicly. It's being done behind the curtain by inflation that lead to hyper inflation and finally to "delete all our assets and start from scratch" but without honest "we are bankrupt". But it's not only US. Same with Europe, Asia.
Why would the fed print too much money when they obviously know how it will impact the economy and the value of their fiat? The people will just suffer from great inflation when they do that, and the money will be useless so what's the point of receiving free money. The fed is there to control the monetary system and I don't think that they are stupid enough to go and print so much money just to give it to everyone. Also, take Venezuela as an example since they are suffering from hyperinflation, and one of the alternatives they use is bitcoin, but it doesn't necessarily mean that btc will directly increase.
After the above two replies, I don't have much to say on the interrelationship between money printing and Bitcoin pricing. But just on the free money part, I want to add my 2 satoshis!
Let's assume you live in a society where the governmentr is providing free money to all irrespective of what you do! It's free money and do not have to work for it! Can you assume its implication??
There will be no janitor to clean up the streets, there will be no doctor to treat the patients, there will be no company to build your house, there will be no supermarkets to provide you with your regular supplies! In a nutshell the entire economy will collapse. Money will have no value as it won't help you to buy any goods or services!
That's why FED don't print money as per your wish and ship it to your home! That's why we all have to work to earn money!
Hope this helps!
Let's assume you live in a society where the governmentr is providing free money to all irrespective of what you do! It's free money and do not have to work for it! Can you assume its implication??
There will be no janitor to clean up the streets, there will be no doctor to treat the patients, there will be no company to build your house, there will be no supermarkets to provide you with your regular supplies! In a nutshell the entire economy will collapse. Money will have no value as it won't help you to buy any goods or services!
That's why FED don't print money as per your wish and ship it to your home! That's why we all have to work to earn money!
Hope this helps!
When Fed prints more fiat, it is tanking the value of fiat. It is NOT increasing value of bitcoin.
For example if we assume bitcoin value stays stable (like when it reaches mass adoption) and you could pay your rent with 0.01 bitcoin or with 5000 USD, when they tank the fiat value with inflation you still pay your rent with 0.01 bitcoin but now you pay 10000 USD for instead and obviously bitcoin "price" has gone up against USD in that scenario without gaining any "value" just because of inflation.
In the coming year we will see a huge bitcoin price rise and most of it like always will be due to mass adoption but part of it will also be because fiat is tanking.
For example if we assume bitcoin value stays stable (like when it reaches mass adoption) and you could pay your rent with 0.01 bitcoin or with 5000 USD, when they tank the fiat value with inflation you still pay your rent with 0.01 bitcoin but now you pay 10000 USD for instead and obviously bitcoin "price" has gone up against USD in that scenario without gaining any "value" just because of inflation.
In the coming year we will see a huge bitcoin price rise and most of it like always will be due to mass adoption but part of it will also be because fiat is tanking.
100% true. There is also another factor that boost bitcoin price (thanks to printers doing brrrrr). It's the first time that money has no way to escape from loosing on purchasing power. Already posted it few days ago but it fits to this discussion as well. Here is my quote:
0 - printers doing brrrr to buy treasury bonds
1- this makes negative real yields on bonds (this push money down)
As of 2017, the size of the worldwide bond market (total debt outstanding) is estimated at $100.13 trillion, 100 trillion is looking for alternative
2- interest on term deposits in banks are close to zero (this push money down)
3- corporate bonds risk of not being paid is bigger than expected ROI (this push money down)
4- inflation and fear of inflation getting bigger and bigger forces people to look for assets that will protect their funds from inflation by accepting even greater and greater risk (because safe assets guarantee a real loss (expected profit - inflation))
5- this push money to real estate makes them super expensive (3-4 % real profit from renting is still not enough to cover inflation)
6- this push money deeper and deeper (stocks and dividend profits) but they are cosmically overvalued and dividends are very small
As of December 31, 2019, the total market capitalization of all stocks worldwide was approximately US$70.75 trillion. so 70 trillion is looking for alternative
7- this push money deeper into very high risk assets (bitcoin) - the profit opportunity is usually better than the loss guarantee - and bitcoin is worth only 300 bil $ so even a small fraction moved from above assets will cause huge pump here.
“The United States printed more money in June than in the first two centuries after its founding,” Morehead wrote. “Last month the U.S. budget deficit — $864 billion — was larger than the total debt incurred from 1776 through the end of 1979.”
https://cointelegraph.com/news/us-printed-more-money-in-one-month-than-in-two-centuries
"In response to the coronavirus, the Federal Reserve has printed approximately $3 trillion. The total assets of the Federal Reserve as of the end of February 2020 was $4.16 trillion. By the end of July, total assets was $6.95 trillion."
https://medium.com/discourse/do-you-realize-the-massive-amount-of-money-printing-happening-due-to-the-coronavirus-pandemic-1f4347cc0404
1- this makes negative real yields on bonds (this push money down)
As of 2017, the size of the worldwide bond market (total debt outstanding) is estimated at $100.13 trillion, 100 trillion is looking for alternative
2- interest on term deposits in banks are close to zero (this push money down)
3- corporate bonds risk of not being paid is bigger than expected ROI (this push money down)
4- inflation and fear of inflation getting bigger and bigger forces people to look for assets that will protect their funds from inflation by accepting even greater and greater risk (because safe assets guarantee a real loss (expected profit - inflation))
5- this push money to real estate makes them super expensive (3-4 % real profit from renting is still not enough to cover inflation)
6- this push money deeper and deeper (stocks and dividend profits) but they are cosmically overvalued and dividends are very small
As of December 31, 2019, the total market capitalization of all stocks worldwide was approximately US$70.75 trillion. so 70 trillion is looking for alternative
7- this push money deeper into very high risk assets (bitcoin) - the profit opportunity is usually better than the loss guarantee - and bitcoin is worth only 300 bil $ so even a small fraction moved from above assets will cause huge pump here.
“The United States printed more money in June than in the first two centuries after its founding,” Morehead wrote. “Last month the U.S. budget deficit — $864 billion — was larger than the total debt incurred from 1776 through the end of 1979.”
https://cointelegraph.com/news/us-printed-more-money-in-one-month-than-in-two-centuries
"In response to the coronavirus, the Federal Reserve has printed approximately $3 trillion. The total assets of the Federal Reserve as of the end of February 2020 was $4.16 trillion. By the end of July, total assets was $6.95 trillion."
https://medium.com/discourse/do-you-realize-the-massive-amount-of-money-printing-happening-due-to-the-coronavirus-pandemic-1f4347cc0404
When Fed prints more fiat, it is tanking the value of fiat. It is NOT increasing value of bitcoin.
For example if we assume bitcoin value stays stable (like when it reaches mass adoption) and you could pay your rent with 0.01 bitcoin or with 5000 USD, when they tank the fiat value with inflation you still pay your rent with 0.01 bitcoin but now you pay 10000 USD for instead and obviously bitcoin "price" has gone up against USD in that scenario without gaining any "value" just because of inflation.
In the coming year we will see a huge bitcoin price rise and most of it like always will be due to mass adoption but part of it will also be because fiat is tanking.
For example if we assume bitcoin value stays stable (like when it reaches mass adoption) and you could pay your rent with 0.01 bitcoin or with 5000 USD, when they tank the fiat value with inflation you still pay your rent with 0.01 bitcoin but now you pay 10000 USD for instead and obviously bitcoin "price" has gone up against USD in that scenario without gaining any "value" just because of inflation.
In the coming year we will see a huge bitcoin price rise and most of it like always will be due to mass adoption but part of it will also be because fiat is tanking.
so why waste the electricity and do that all btc mining why to use middle men like exchngers and wall street?? and banks
if the fed are main source of money.... let the all bitcoin holders will give the fed our bank account numbers and fed will directly transfer money in our bank accounts?
or if its even better the fed will send us cash with shipping container or i dont mind to go to at the money printing location to pick up my cash
great idea right? right crypto is all about to cut off the middle men
banks exchngers and wall street bankers and miners...if the fed want to us to feed with money let them do it easy and fastest ways
if the fed are main source of money.... let the all bitcoin holders will give the fed our bank account numbers and fed will directly transfer money in our bank accounts?
or if its even better the fed will send us cash with shipping container or i dont mind to go to at the money printing location to pick up my cash
great idea right? right crypto is all about to cut off the middle men
banks exchngers and wall street bankers and miners...if the fed want to us to feed with money let them do it easy and fastest ways Jump to: