Ninjastic
PostEdited versionsQuotes to this post
Post
Topic
Board Speculation
Re: Price climbing fast again
by
deisik
on 01/03/2017, 10:58:15 UTC
Quote from: virusasog on March 01, 2017, 10:15:43 AM
Quote from: deisik on March 01, 2017, 04:32:26 AM
Quote from: Victorycoin on February 28, 2017, 08:47:22 PM
A recent news however about a 10% increase in budget for defense is indirectly a wind behind the sail of Bitcoin, because those $54 billion dollars are going to come from thin air and then worsen the inflation dilemma the dollar is already having and then the race to Bitcoin as save haven would simply continue

Again, that remains to be seen

Trump has also said he is going to constrain as well as eventually diminish the US national debt, and he bragged just about that after a month of being the US president when the debt declined somewhat. Since the US budget deficit has been mostly financed via debt during the last years, a 10% increase in military spending basically means a cutdown in other expenditures (e.g. Social Security) if Donald is really going to curtail debt. But less debt means less dollars (i.e. higher value)

 What's the case here, are you saying is involves in the price bump of bitcoin. I thought it may happened because of the adoption is moving more to bitcoin. Then demand is going more bitcoin nowadays. Clarify the information

What is not clear in my post?

The poster I replied to meant to say that Trump is going to increase military expenses. If other budget expenditures remain the same and there are no additional sources of income (e.g. from taxes raised), the only way to finance these new expenses would be through printing new money (i.e. increasing debt). That basically means devaluation of the US dollar and Bitcoin growth (since people would pour their money from dollars into Bitcoin). But Trump said that he is going to bring down the US national debt, so the only way to finance war is through cutting down on other expenses (e.g. social expenditures)