The latest Bitcoin news show that Bitcoin proponents are voicing fresh alarm after the United States Federal Reserve, known as The Fed, printed more than the entire BTC market cap in new money this month.
As noted by the cryptocurrency social media pundit Dennis Parker on October 21, the Fed managed to inject around $210 billion into the economy since mid-September. All of this was part of the newly revitalized quantitative easing (QE) strategy and a move that dwarfs the total market cap of Bitcoin which is now at $148 billion.
Currently, QE refers to the buying up of government bonds in order to provide a good economic stimulus. The Fed has a balance sheet which recently saw a spike, as Parker noted. From what we can see now, the balance sheet jumped from $3.77 trillion last month to $3.97 trillion. It had previously been higher, while the Fed and its own projections call for a balance sheet worth $4.7 trillion by 2025.
For holders of assets which cannot have their supply inflated including gold and Bitcoin, money printing has continuously sparked calls to decrease the reliance on fiat currency.
Parker and his suggestion that investors should buy more Bitcoin comes amid warnings from even the fiat establishment itself about the potential ailing health of the banking system. In an official speech at the International Monetary Fund and its general meeting last week, the former Bank of England governor Mervyn King told attendees that the world was “sleepwalking” into a financial crisis that is even worse than the one of 2008.
“By sticking to the new orthodoxy of monetary policy and pretending that we have made the banking system safe, we are sleepwalking towards that crisis,” he said in the crypto news today.
The concept that interventionist economic practices on the part of governments and central banks leads to financial destruction – and forms one of the central tenets of the Saifedean Ammous “The Bitcoin Standard.”
The book, which was released in March 2018, focuses on Bitcoin as it compares to fiat currency and commodities including gold. As we noted, the Fed and its increase comes in not so good times for Bitcoin. At ten years old, the most dominant cryptocurrency has now lasted 40% of the average fiat currency’s lifespan.
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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