So the $1.9 trillion stimulus bill has passed the senate and is now nailed on to be signed off by Biden on 14th March.
I was wondering what effect you think this will have on Bitcoin over the coming days, weeks, months and even years? It doesn't seem to have made a huge impact straight away, I guess this is because people were expecting it to happen anyway but surely as the stimulus starts to take effect over the next few months, inflation is going to become a huge problem for any individuals and companies who happen to be sitting on piles of cash. Will the government be able to stop inflation from running out of control or are Bitcoin and crypto holders in for the treat of their lives?
https://eu.usatoday.com/story/news/politics/2021/03/06/bidens-covid-stimulus-bill-passes-senate-legislation-heads-house/6886446002/I cann't say how $1.9 trillion will affect btc in the coming days and weeks, but I suppose that in the long term, it will affect positively. The Senate will give this money to the population not at one time and not in one day, right. When this money is in the hands of people, then most of them are likely to invest in the stock market and more likely in btc too. I think that the bubble that arose in the stock market because of the printed money without collateral will spill over to the crypto market. Actually, this has already partially happened over the past year. But if there is more money, the bubble in the crypto market should grow even more. I am inclined to think that the current price of btc was partly shaped by the money that was handed out during the pandemic and the lockdown. Without that money, the current rate would be lower.