Stock Rebound is Trap, Go Bitcoin Instead: Galaxy Digital CEO

Billionaire Michael Novogratz said that the recent rebound in stocks might lead to another decline soon. Instead, he is confident in Bitcoin and gold.

Bitcoin Will Be Among Ideal Safe-Havens
Novogratz, CEO of crypto merchant bank Galaxy Digital, told CNBC’s “Squawk on the Street” that investors shouldn’t be misled by the recent spike in stock prices. Instead, buying non-stock assets, including cryptocurrency and gold, would be the right approach.The US stock indexes have been bullish amid cautious optimism around the coronavirus pandemic. However, Novogratz doesn’t buy it.

I think this is short covering. I think one or two more days and people will sell into it, the billionaire said.

He stressed that he was still bullish on Bitcoin, even though the largest cryptocurrency experienced one of its worst crashes last month. The price has recovered a big chunk of its losses since then however, and is currently trading above $7,300. Novogratz added:

I have a big bitcoin position. I continue to add to it partly because I think this is an amazing environment for both being long gold and long Bitcoin.

He suggested that the fiat supply is growing on steroids, as the Fed is pumping trillions to save the US economy.

Money is growing on trees right now. And I learned when I was a little kid that money really doesn’t grow on trees. And when you have a global, money printing orgy going on… at one point that comes home to roost, and so I think hard assets are going to be a big buy, Novogratz concluded.

Should You Listen to Novogratz?
Galaxy Digital boss has always been bullish on Bitcoin, so there is nothing unusual about his latest comments. The interesting thing about Novogratz is that he has big connections on Wall Street, and his voice might reflect the mood of some of his fellows from the financial elite.

For example, the billionaire is a member of Kappa Beta Phi, a very secretive Wall Street organization that has been around for about a century. The society, whose recruits are dressed in drag and ridiculed by veterans, includes top executives and officials like former New York

City mayor Michael Bloomberg and BlackRock CEO Laurence Fink. Interestingly, BlackRock was hired by the Fed to buy corporate bonds and other assets on behalf of the US Treasury.

Source: Bitcoininst

Bitcoin

Billionaire Makes The Case For A $1 Million Bitcoin Price

Social Capital CEO and former Facebook FB executive Chamath Palihapitiya was an early Bitcoin investor. He bought a lot of the cryptocurrency back in 2013 when the Bitcoin price was around $80 per coin, and he claims that, at one point, he owned around 5% of the entire Bitcoin monetary base.

In a recent discussion with Morgan Creek Digital Partner Anthony Pompliano, Palihapitiya shared his views on the current state of the global economy and governments’ different options for getting things back on track. Additionally, Palihapitiya explained how Bitcoin could stand the gain from the major economic crisis of the 2020s.

Although he thinks Bitcoin is still too volatile for mass adoption today, Palihapitiya believes the chances for Bitcoin to succeed as a global reserve currency have increased over the past few months.

Bitcoin Volatility Still Too High

When first asked for his thoughts on Bitcoin in the context of the currently-unfolding global economic turmoil, Palihapitiya pointed out that Bitcoin is not ready for prime time as it exists today.

“It’s still a speculative instrument, and it’s too speculative for it to be reliable,” said Palihapitiya. “If you’re going to make the case that it should replace fiat currency, one thing you have to look at is the volatility of the U.S. dollar. You can’t replace it with something that’s nine sigma more volatile. It doesn’t work.”

Palihapitiya added that traditional fiat currencies are critical pillars of how businesses operate today due to their relative stability. In his view, Bitcoin’s volatility is a crutch that is holding it back from further adoption.

“[Extreme volatility] pushes [Bitcoin] into this ghetto of day traders and speculators,” said Palihapitiya. “And, right now, that’s where we are. We’re in that ghetto.”

In Palihapitiya’s view, the day traders and speculators must be flushed out in order for Bitcoin to get out of the ghetto of volatile assets. Additionally, the interest of long-term holders must be maintained, and the potential for the traditional financial infrastructure to implode must appear increasingly likely.

The Opportunity for the Bitcoin Price in the 2020s

The good news for Bitcoin holders is that, according to Palihapitiya, the existing financial system looks much weaker than it did just a few months ago.

“We are driving, slowly but we are driving, towards a cliff,” said Palihapitiya. “And then, we’re going to drive much, much faster down that cliff or down that hill. And at the end of it is a huge brick wall.”

According to Palihapitiya, the world will have to choose between inflation (and removing inefficiencies in the economy) and debasement once the global economy runs into that brick wall.

“The path dependence for Bitcoin is if it looks like [debasement] is likely, it will really emerge as a flight to safety,” added Palihapitiya.

The former Facebook executive noted that this move towards a brick wall will take ten years to take shape.

Like many others, Palihapitiya sees Bitcoin as a binary investment, and in his view, these price swings in the thousands of dollars don’t matter in the grand scheme of things.

“This is either zero or it’s millions,” said Palihapitiya.

In the case where a single Bitcoin is worth $1 million or more, Palihapitiya sees the cryptocurrency as the basis for a quasi gold standard where the hard money is held by everyone rather than central banks. Palihapitiya thinks the probability of this scenario playing out in the real world has recently increased.

“If the probability was 1% that [Bitcoin] would be valuable, unfortunately, the probability is now probably like 5% or 10%,” said Palihapitiya. “And there’s a real chance that by 2030 we don’t find a way to inflate our way out of this. The only way to break the back of inflation is essentially to create some quasi form of a gold standard, but it’ll be almost impossible to do that between governments and central banks. They’ll never agree on an instrument and they’ll never agree on an exchange [rate]. But then, bottoms up, people could decide to do it [with Bitcoin].”

On the other hand, Tesla CEO Elon Musk recently shared his view that he doesn’t think Bitcoin will…

Continue reading at FORBES.com

 

 

Bitcoin Is On Fire

Bitcoin is once again climbing, making gains alongside broader markets—with the bitcoin price up 12% over the last week and powering into the second quarter.

The bitcoin price is up almost 6% over the last 24-hour trading period, outperforming almost all major indexes despite stocks across Europe following Asia slightly higher.

Bitcoin, cryptocurrency, and equity markets have all climbed as investors around the world cheered early signs lockdowns in counties around the world are beginning to slow the spread of the coronavirus COVID-19.

The bitcoin price has again crossed the $7,000 per bitcoin level, climbing to $7,170 on the Luxembourg-based Bitstamp exchange—up about $1,000 on the same time seven days ago.

Ahead of the coronavirus crisis, bitcoin investors were upbeat at the beginning of the year, a survey of high-level bitcoin and cryptocurrency exchange users showed last month, with most expecting the bitcoin price to soar to over $20,000 per bitcoin in 2020.

Across Europe markets added between 2% and 4% by midday after major Asian markets finished the day up by around 3%.

“[Bitcoin and cryptocurrency] purchases follow the signs of improving sentiment in the stock markets,” said Alex Kuptsikevich, senior financial analyst at the FxPro.

“As soon as risk assets start to attract demand actively, institutional investors may also increase their positions in the cryptocurrency.”

“Investors are shrugging off the pessimism,” AvaTrade’s chief market analyst Naeem Aslam wrote in a note to clients, adding if lockdowns are removed prematurely a second coronavirus wave could hit “with more intensity [and] we could be in a for a longer period of recession.”

Gold, a so-called safe-haven asset in times of economic uncertainty, has also jumped by over 1% to a more than one-week high—suggesting fears over a coronavirus-induced global recession continue to worry investors.

Last week, reports of an increase in bitcoin demand led some to recall a bitcoin’s epic 2017 rally that saw the bitcoin price rise from under $1,000 at the beginning of the year to around $20,000 in under 12 months.

“I haven’t seen this much organic new interest in bitcoin since early 2017 in my non-crypto circles,” said well-known crypto investor Ari Paul, the co-founder and chief investment officer of BlockTower Capital, via Twitter.

U.S. president Donald Trump has said he is seeing signs that the coronavirus outbreak in the U.S. may be levelling off, while at the same time warning the country needs to prepare for a “very deadly period” over the coming two weeks.

Trump had previously said he had hoped the U.S. could be back at work by Easter Sunday, April 12. It’s thought around one in every four Americans are currently home from work.

New York governor Andrew Cuomo has, however, said it’s too early to call a plateau of the epidemic in the hard-hit coronavirus hotspot, with the number of daily fatalities in New York dropping slightly to 594 yesterday.

Elsewhere, there have been indications that the coronavirus pandemic is being brought under control in Italy, Germany, France and Spain with fewer new cases reported.

Amid the green shoots of a recovery, others are less upbeat.

“I think the balance of probabilities are…

Continue reading at FORBES.com

 

 

Bitcoin

Bitcoin Records Highest Price Since Crisis Began, Sign For The Near Future?

Bitcoin had a relatively good week of trading as it recorded its highest price since the coronavirus crisis began in March. Yesterday, BTC peaked at above $7,200, marking an impressive daily run that sent the entire cryptocurrency market well in the green. The majority of altcoins were also charting double-digit increases.

Since then, Bitcoin’s price retraced to where it currently sits at about $6,750. The important level to look for right now appears to be $7,000, and if the bulls manage to break it, they might aim for $7,500 next.

This week there was also a major acquisition, arguably one of the biggest in the cryptocurrency field. Binance, the world’s leading exchange, acquired Coin Market Cap – the largest data monitoring resource in the field. The sum of the deal was undisclosed.

On another note, the novel coronavirus continues to cause a lot of damage to the markets. As many countries instituted mandatory and recommended lockdowns, legislation is also stalling. Russia, for example, delayed the passing of a bill which, interestingly enough, would prohibit cryptocurrencies to be used as a means of payment.

Amid this economic uncertainty, stablecoins are taking the spotlight. There is a record-breaking amount of USDT circulating, as its number sits above 6 billion for the very first time. It’s perhaps somewhat expected in times of serious volatility. It’s interesting to see how this money will be deployed and if it would have an impact on the market.

Market Data

Market Cap: $192B | 24H Vol: $153B | BTC Dominance: 65.4%

BTC: $6,881 (+2.97%) | ETH: $144,79 (+4.85%) | XRP: $0.180 (+2.54%)

Crypto-friday-post.ai-april

The Biggest Crypto Acquisition? Binance Exchange Acquired CoinMarketCap For An Undisclosed Sum. Binance, the world’s leading cryptocurrency exchange, acquired the biggest data monitoring resource Coin Market Cap for an undisclosed amount. Both entities will remain entirely independent, according to the official releases.

No April Fools’: $633 Million Worth Of Bitcoin Transferred For Just $0.26 Fee. This week saw another example of the efficiency of Bitcoin’s network. A whale transaction for $633 million worth of BTC was carried out for an insignificant fee of just $0.26. The transfer was made by the cryptocurrency custody giant Xapo as an internal transfer.

Telegram Can’t Sell GRAM Tokens Even Outside The U.S., Judge Clarifies. The saga with Telegram and the US SEC continues. A judge has recently clarified that the company behind the popular encrypted messaging app won’t even be able to sell GRAM tokens to residents outside of the U.S.

Sitting Aside: Record-Breaking 6 Billion Tether (USDT) In Circulation Following Major Bitcoin Price Volatility in March. In times of economic uncertainty, investors tend to seek ways to protect their capital. This is perhaps the reason for which there are currently over 6 billion USDT in circulation – the highest amount in history.

Russia’s Legislative Ban On Cryptocurrency Delayed Because Of The Coronavirus. Countries continue to suffer due to the spread of the novel coronavirus. A report came recently that Russia will have to delay legislation that would potentially see cryptocurrencies banned as a means of payments in the country.

Bitcoin’s Opportunity? The U.S. Dollar Losses Value Following The Record $6.2T Stimulus Package. Because of the outbreak of COVID-19 and the effect it had on the global financial markets, the U.S. initiated a stimulus package that would see a total of at least $6.2 trillion printed. This had a negative effect on the dollar that temporarily lost value against the Euro and the GBP. Perhaps this is Bitcoin’s time to shine.

Charts

This week we have a chart analysis of Bitcoin, Ethereum, Ripple, Bitcoin EOS, and Tezos – click here for the full price analysis.

The post Bitcoin Records Highest Price Since Crisis Began, Sign For The Near Future? The Crypto Weekly Update appeared first on CryptoPotato.

Source: Crypto Potato

Gold And Bitcoin Record 2-Day Price Surge Despite Plunging Markets

The coronavirus continues to spread like wildfire, with almost a million people infected throughout the entire world. Gold and Bitcoin, however, are performing particularly well during the last two days.

Their steady performance also comes in times when Wall Street crashes, summarizing a terrible first quarter, and thousands of people are losing their jobs.

Gold, primarily regarded as a safe haven asset, holds relatively well in the current times of economic uncertainty. At least according to historic behavior during the most prominent financial collapses. And what about Bitcoin? There is a lot of going on discussions about whether BTC is a safe-haven asset, just like gold or not. Bitcoin now has its first major financial crisis.

27,000 Reportedly Lost Their Jobs In The US

As the coronavirus continues to spread, a lot of people are left without a job. This comes mainly because countless countries are instituting both mandatory and recommended lockdowns, sending entire industries in a troublesome situation.

According to a report by a private-sector payrolls processor ADP, 27,000 people lost their jobs in March alone. This, however, was better than most expectations as the consensus forecasts were calling for job losses of around 150,000.

While Wall Street’s major indices saw 4-5% aggregated declines over the past two days, as of writing these lines, the price of gold surged by 2.5%, and Bitcoin price is even more impressive.

The price of gold has been holding up relatively stable lately and is fairly flat in the past few days as an ounce currently trades above $1,600.

btc_gold_sp-min
Gold (yellow) and Bitcoin (orange) rising, while the S&P declines (blue)

 

As Cryptopotato reported, however, some models are putting the fair value of gold to about $8,900, which is more than five times higher. 

Bitcoin Price Also On The Move

Gold is not the only asset that’s been holding up its value fairly well. Bitcoin has been performing rather nice over the past 24 hours as it managed to gain more than $900 and is currently trading above $7,000. 

It’s worth noting that the cryptocurrency is up more than 14% on the day and is bringing the entire market with it. Bitcoin is now facing its highest price since the fatal crash that took place on March 12.

crypto_overview

Cryptocurrency Market Overview. Source: Coin360.comAs seen on the above chart, altcoins are also popping up, with Ethereum, Bitcoin Cash, Litecoin, EOS, Binance Coin, and all the other majors bringing in nice double-digit increases. The entire market has increased by a total of $20 billion in the past day alone.

The post Uncorrelated Safe-Haven: Gold And Bitcoin Record 2-Day Price Surge Despite Plunging Markets appeared first on CryptoPotato.

Source: Crypto Potato

Why the Bitcoin ‘Halving’ Will Change Everything

In six weeks the number of Bitcoins produced with each block will be reduced to 6.25. This reward halving has long been predicted to put upward pressure on the price. One analyst is demonstrating the significance of this move by comparing it to other limited commodities.


BITCOIN COMPARED TO PRECIOUS METALS

Analyst PlanB has tweeted a unique chart that looks at Bitcoin’s stock-to-flow ratio. This ratio is a metric that compares the available quantity with the production rate. It is often used with precious metals to predict production profitability.

PlanB@100trillionUSD

halving .. 1 month to go 🚀
1) miner flow will halve from 1800 to 900 btc/day
2) scarcity (stock-to-flow) will double from 27 to 54 yrs

View image on Twitter
481 people are talking about this

This chart ties in with an article written by PlanB last year. The author notes that Bitcoin currently has a stock-to-flow ration of 25 (now 27). This means that at current production rates it would take 27 years to mine the present number in existence. However, the halving will cause this number to roughly double, as production is cut in half.

PlanB has demonstrated that over the past ten years a strikingly clear correlation exists between Bitcoin’s market price and its stock-to-flow ratio. He predicts that should this trend continue, the flagship cryptocurrency could soon have a market cap of USD $1 Trillion, or $55,000 per coin.

He states:

Bitcoin is the first scarce digital object the world has ever seen, it is scarce like silver & gold, and can be sent over the internet, radio, satellite etc . . . A statistically significant relationship between stock-to-flow and market value exists. The likelihood that the relationship between stock-to-flow and market value is caused by chance is close to zero.

DEVELOPMENT WILL CHANGE THE BLOCKCHAIN SPACE

The analysis put forward by PlanB is compelling. It reinforces arguments from other analysts that have predicted a big price spike due to the halving. Worth noting, however, is the fact that Bitcoin remains a work in progress. In order to continue to hold value it must continue to achieve mass adoption and fend off competition from rival alt coins.

Importantly, the Lightning Network has yet to…

Continue reading at BITCOINIST.com

 

 

 

Crypto Traders See Bitcoin (But Not Ethereum) Surging To All-Time Highs In 2020—Here’s Why

Bitcoin investors have nervously watched markets over recent weeks, with some senior figures in the bitcoin community warning confidence has “evaporated.”

The bitcoin price has swung wildly along with traditional markets since the coronavirus COVID-19 began spreading out of China, dropping to lows of under $4,000 per bitcoin from almost $10,000 in early March.

Now, despite bitcoin dropping by some 30% over the last 30-day period, survey results show bitcoin investors were upbeat at the beginning of the year, with most expecting the bitcoin price to soar to over $20,000 per bitcoin in 2020.

The average 2020 bitcoin price target cited by traders and investors was $22,866 per bitcoin, a survey of U.S.-based bitcoin and crypto exchange Kraken users showed, up on bitcoin’s all-time high of around $20,000.

The bitcoin price has fallen by some $2,000 since the survey was carried out, hit hard by the broader market sell-off sparked by the spreading coronavirus.

Bitcoin sunk to lows of under $4,000 earlier this month before bouncing back to trade over $6,000 and remains highly volatile.

The U.S. Federal Reserve and central banks around the world have moved to pump unprecedented levels of freshly-printed cash into the system in response to the coronavirus crisis, with some senior bitcoin and cryptocurrency figures arguing this could result in a surge of interest in crypto.

“As we get used to talk about trillions, a modest $2 trillion market cap of bitcoin will put one bitcoin at $100,000,” the chief executive of the world’s largest bitcoin and crypto exchange Binanace, Changpeng Zhao, said via Twitter, adding it’s “not such a hard to imagine number now, right?”

However, the outlook for altcoins was less rosy with only slight more than half (54%) of respondents expecting a so-called alt season this year.

Traders didn’t see ethereum, the world’s second most valuable cryptocurrency returning to its all-time highs this year, with an average price target of $810—down from ethereum’s all-time highs of over $1,000 in late 2017.

Elsewhere, bitcoin and crypto market sentiment was mixed. A majority (44%) of respondents saw the market as bullish, though 34% were undecided and 22% felt it was in bear market territory.

Bitcoin and crypto traders also failed to find common ground as to what will push the market forward this year.

“Adoption” was cited by 19% of respondents, while bitcoin’s upcoming halving was named by 15%. Political “conflict,” “fear of missing out,” and economic “crisis” were also popular responses.

The survey, carried out in late January, polled some 400 so-called VIP Kraken users, with 41% of respondents describing themselves as “investors,” 40% as “traders,” and 15% as “institutions”—the remainder was made up of “payment processors,” “crypto exchanges” and “miners.”

Meanwhile, nearly 50% of respondents said they expect the U.S. Security and Exchange Commission (SEC) to approve a bitcoin exchange-traded (ETF) fund this year.

Earlier this year…

Continue reading at FORBES.com

 

 

Donald Trump Just ‘Advertised’ Bitcoin After Fed Creates $6 Trillion

Bitcoin (BTC) gained ironic support from United States President Donald Trump on March 27 after he appeared to say he supported manipulating the dollar.

In a press conference quoted by various Twitter commentators, including Blockstream CSO, Samson Mow, Trump defended the Federal Reserve printing more than $6 trillion.

Trump: the dollar is “our money, our currency”

“The beautiful thing about our country is $6.2 trillion — because it is 2.2 plus 4 — it’s $6.2 trillion, and we can handle that easily because of who we are, what we are,” he said.

“It’s our money; we are the ones, it’s our currency.”

While Trump did not provide any further explanation of his train of thought, he appeared to endorse the Fed providing the astronomical sum of liquidity for the U.S. market. In turn, the dollar supply would be heavily expanded.

It is this form of meddling in the money supply that forms a central tenet of Bitcoin as a financial solution. The coronavirus epidemic emboldened its supporters, who watched on as the Fed admitted that it had “infinite” money.

“How much did we pay Trump to advertise #Bitcoin?” Mow summarized.

Bitcoin versus U.S. 10-year bond returns

Bitcoin versus U.S. 10-year bond returns. Source: Skew.com

$6 trillion reality sinks in

Reactions to the giant $6.2 trillion meanwhile continue to appear, as various cryptocurrency users showed their surprise. Hodlonaut, the organizer of last year’s Lightning Torch transaction relay, argued that under an unlimited money situation, paying taxes made no logical sense.

Caitlin Long, the ex-Goldman Sachs executive who subsequently pioneered friendly Bitcoin regulatory approaches in Wyoming, described the monetary intervention as killing capitalism.

She also warned that the Fed’s balance sheet would more than…

Continue reading at COINTELEGRAPH.com

 

 

Altcoins

Getting Ready for the Altcoin Resurgence

The altcoin market has been through tough times. At one point, the market lost over 90% of its value from its peak of $780 billion in January 2018. Many altcoin projects that were supposed to be “the next big thing” are nowhere to be seen today.

We are experiencing first-hand the beginning of “Crypto Darwinism” in the altcoin market

We see Darwinism in nature, where natural selection means only the fittest survive. We also see these same principles in capitalism — the automobile replaced the horse and carriage, email replaced fax, and online streaming replaced DVDs.

Now, we’re beginning to see a Darwinian selection process in the altcoin market. Altcoin projects unfit to survive have been either eradicated or abandoned, whereas projects that are committed to delivering value to their users have generally made it through the crypto winter and are beginning to flourish. Projects such as Chainlink and Cosmos have even claimed spots among the top 20 cryptocurrencies. We’re beginning to see the resurgence of altcoins.

Related: What’s Next for the Industry as ‘Crypto Winter’ Thaws?

A new generation of altcoins are beginning to make waves, and these projects seem to have a number of traits in common.

1) Traction

Most of the altcoins that are considered top contenders today have proven use cases with proven users. Projects such as Ethereum (ETH), Tron (TRON) and EOS (EOS) are still in the top 20 today because they provide a robust ecosystem for decentralized apps with smart contract functionality. A quick look at the top DApps shows that these three platforms are home to the DApps with the most users and DApp usage. They host applications such as games, gambling platforms and decentralized exchanges, providing users with real value and entertainment. Games such as EOS Dynasty and My Crypto Heroes have thousands of active users per day. 888Tron, the gambling platform on Tron’s blockchain, has $800,000 in daily gambling volume. Exchanges such as Eosfinex and NewDex provide users with an ultra-secure, high-liquidity, non-custodial trading solution.

Related: Why Centralized Exchanges Are Decentralizing

Chainlink provides value by increasing the utility of the systems connected to its decentralized pricing Oracle, removing reliance on centralized price feeds and thus reducing risk. Chainlink’s Oracles collect real-world price data and then provide this data so that dependent systems are not exposed to a centralized point of failure (in most cases, decentralized smart contract networks that rely on centralized price feeds are not really decentralized). Chainlink’s collaboration with both Ampleforth and Polkadot are great examples of altcoin use cases being validated and value being created.

Another factor to consider in determining the success of altcoins

2) Yielding assets

Staking is like a turbocharger for altcoins. Providing a yield, reducing supply and incentivizing participation are all very powerful. Altcoins like Cosmos (ATOM), Tezos and Icon (ICX) give users the opportunity to earn a passive income just by owning and staking their coins. Some government bonds, such as German 10-year bonds, are paying negative interest rates (you are paying to lend these institutions your money). Through staking altcoins, users can earn upwards of 10% in annual interest while simultaneously investing in projects they wish to support.

Like installing a turbocharger on a broken engine, staking is not enough to turn a bad project into a good one, but it can certainly boost an altcoin network.

The final element to an altcoin’s success

3) Community

Community is an element that can’t be overlooked for any project looking to succeed. The community involves everyone from users, developers, partners and marketers. Bitcoin (BTC) and Ethereum are…

Continue reading at COINTELEGRAPH.com

 

 

What Will $6 Trillion in Monetary Expansion Do To Cryptocurrency?

The pressure’s on for Congress to pass a $2 trillion spending bill to thaw the frozen economy. While they negotiate the largest ever emergency relief bill in US history, markets are getting restless. Stock futures have been volatile as the bill makes progress and stalls, then makes progress and stalls again. Voters are getting restless too. Both sides are badgering each other to “Hurry!” while negotiating a $2 trillion transaction with other people’s money.

Any time either side of the partisan divide has a scruple, the other party attacks them for holding up the bill. They insinuate the other side doesn’t care about all the people who are hurting right now. Of course, a swarm of each party’s rank and file supporters also join in the shouting. The farther you zoom out from the picture, the more ludicrous the entire affair looks from afar.

Here’s Something You Can’t Do With Bitcoin:

Further, so much of the bill, styled as an emergency stimulus package, is just a massive grab bag of goodies and pork-barrel spending for bloated Washington bureaucracies America can definitely live without, and special interest groups with lobbyists on K Street. $25 million for the JFK Center for the Performing Arts. $75 million for the National Endowment for the Arts. $75 million for the National Endowment for the Humanities. And a monster $500 billion slush fund for Treasury Secretary Mnuchin to dole out to corporations at his discretion with little oversight.

When a terrible crisis strikes, politicians and special interest groups huddle together in Washington and grab all the money and power, they can possibly get their hands on. It’s the American way. Washington did this to Americans during the 2008 Financial Crisis with Bush’s $700 billion Wall Street bailout in 2008, and Obama’s $831 billion stimulus bill in 2009.

At least in 2008, many Americans put up a fight about it. They tried to melt the Congressional switchboard calling their representatives to urge against these massive appropriations. Today America is so slavish and afraid because of coronavirus that even Trump’s “anti-socialist” supporters are eager to get their checks.

The Federal Reserve Is Crypto’s Best Friend

And the $2 trillion stimulus package at the center of all this drama is dwarfed by the money the Federal Reserve is pumping into the banking system. Top White House economist Larry Kudlow says it’ll amount to $4 trillion. And Congress doesn’t actually have any of the money for its spending bill. It’s borrowing all of that, so the Fed will have to create most of it out of thin air. Just like the $4 trillion it’s creating to shore up banks. That will make the entire monetary expansion $6 trillion in total.

The entire adjusted monetary base is currently $3.3 trillion. So the monetary-political complex is about to triple the money supply in the coming months. That’s what they did in the wake of the 2008 financial crisis. Quite more than doubled it actually. And that crisis not only gave us Bitcoin but saw it rise in price so dramatically until 2017, it became the greatest investment in world history by ROI. That’s how highly sought after something like Bitcoin is for merchants and investors.

Expanding the fiat money supply at such breakneck speed will not necessarily make cryptocurrencies like Bitcoin more valuable. But it will drive monetary inflation that causes dollars to depreciate against Bitcoin, driving its nominal value higher. Though, the result of this exercise in fiscal and monetary madness will likely be increased demand for crypto. People looking for an inflation shelter will have a powerful instrument in the intensely deflationary cryptocurrencies like Bitcoin. Bullish.

* Disclaimer: This article is the opinion of the author and does not represent professional financial or investing advice.

The post What Will $6 Trillion in Monetary Expansion Do To Cryptocurrency? (Opinion) appeared first on CryptoPotato.

Source: Crypto Potato