Turbo Money Board – The massive monetary impressions from central banks around the world are already scary to see.
But that still doesn’t seem to be enough for Jerome H. Powell, the chairman of the U.S. Federal Reserve (Fed). This explosive situation could make Bitcoin Machine the currency par excellence.
More and more freshly printed dollars
According to an article in the Financial Times, Fed Chairman Jerome Powell is a strong proponent of an even larger U.S. fiscal stimulus than currently exists.
A new economic rescue package worth about $2 billion is being debated between Republican and Democratic members of the U.S. Congress.
„If the government provides too little support for the recovery, it will cause unnecessary hardship… But the risks of doing too much seem less important at the moment. »
In summary, Powell is more concerned about the risk of an economic recession in the United States than about the risk of hyperinflation and dollar devaluation that all these monetary impressions could cause.
And he’s not the only central banker who is pushing politicians to push the button on the money plate even harder. Eric Rosengren, president of the Boston branch of the Fed, said :
„We absolutely need it, and the sooner we get significant fiscal stimulus, the better. »
Bitcoin, the future of post-trustee currency?
In a publication on Medium, Yorick de Mombynes explains why he thinks Bitcoin (BTC) is a currency in the making :
„The fact that Bitcoin currently serves more as a store of value than as a medium of exchange gives it the status of digital gold. It is a form of gold that has 2 major advantages over physical gold. Bitcoin is obviously much more transportable, but it is also technologically advanced. »
If the era of fiat currencies – begun in 1971 and based solely on confidence in the issuing States – were to decline, notably because of uncontrolled inflation, Bitcoin might become an unavoidable solution, because :
„Bitcoin is elusive: it is immaterial, difficult to understand and almost impossible to confiscate (without taking control of the associated private keys).
No one knows exactly where current monetary policies are leading us. But when some look back – from the Weimar Republic to the most recent cases of Zimbabwe and Venezuela – the spectre of inflationary excesses looms on the horizon. What real impact will the monetary policies conducted during Covid-19 have in the future?