Re: We are about to see the monetary power of the U.S. government
Expect a price jump when stimulus checks start rolling in. I know I'm personally buying some crypto anyone else feel the same way?
So we all have to rely on the mercy of the Federal reserve to print some money and pump the price of Bitcoin?
I thought that Bitcoin is supposed to be independent from any central bank in the world.This is what Satoshi Nakamoto told us,but now 90% of all Bitcoin users only care about the BTC price(which is normal,but sometimes it looks absurd to me).
The stimulus package might pump the BTC price,but probably after a year or two.The global economy has to recover from the lockdowns first.
You are right. Let me add another dimension to your answer:
There is a difference between price and value.
Price of Bitcoin depends upon the currency in which we are determining the price of Bitcoin. Most popular determinant of Bitcoin's price is US Dollar. It is a simple economic concept that if the quantity of base determinant (USD) increases, the price of provided commodity (Bitcoin) will increase.
Even if price of Bitcoin increases, it doesn't mean its value is increasing too. It may rise because of the fall in the value counter determinant (USD).