The FED can print a lot of money – a blessing or a curse for Bitcoin?

The President of the Federal Reserve Bank of Minneapolis, Neel Kashkari, describes that the Federal Reserve has “unlimited cash” – as a reaction to the Worry about the collapse of the stock market.

In his 60-minute speech, Kashkari said:

There is enough cash in the financial system, and there are an infinite amount of cash at the Federal Reserve. We will do whatever we need to do to ensure that there is enough cash in the banking system.

Many Bitcoiners watched the Interview with divided opinions, because new cash can lead to a rising Bitcoin price, but the value of money is devalued substantially, and to a creeping expropriation of citizens (freely translated):

The Bitcoiners have always known a Fiat, is solved by a kind of peg (i.e., Gold), always ends with the abuse of printing Money. The governments cannot help themselves; and, the current crisis has just shown that the Printing of money is one of the few tools which are not yet available. The trillions of USD that are being printed, will be unprecedented in history,

Alan Silbert, CEO of INX said, to Decrypt.

I think once the dust of liquidations, margin calls and complete panic has died down, will the Bitcoin show its strength compared to the unlimited Fiat printing,

he added.

Mati Greenspan, the founder of Quantum Economics, agreed.

This is the reason why Bitcoin was created. One of the main goals of Bitcoin is the idea to counteract that the creation of money may be inexhaustible,

he said.

Bitcoin has a Limit of 21 million Bitcoin, where the amount of newly-minted Bitcoin halved every four years until there is only the smallest quantities are produced. This process is considered Bitcoin Halving known. The traditional markets are in a serious crisis. The S&P 500 has fallen to levels not seen since 2017, and the Dow Jones has fallen to levels that have not been recorded since 2016. In response, the FED had tried to stop the carnage, and promises to be 1 trillion dollars in daily Repo transactions (loans to banks) and further quantitative easing to pump more money into the System.

But to say that an infinite amount of cash to bring things a step further to the end of thought.

Fiat has always been infinite,

Erik Voorhees, CEO of Shapeshift said.

The Central banks never cease to create it, and that’s why he loses every year in value, forever. What has changed, however, is the speed of creation. You have decided to create as much Fiat money as you can imagine. If people want to hold in such a world, a Fiat, then God help you

he added. So far, the price of Bitcoin has reacted positively to the recent announcements of fiscal incentives. While the stock markets have fallen further, works the price of Bitcoin back up to the top. He is now risen by 37% since its low in the last week. If BTC wants to rise to the highs of the last month, a rocky road is still ahead. It remains to be seen which direction Bitcoin will develop.

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