Cheap money means expensive bitcoin

Cheap money means expensive bitcoin

  


How will the world economy operation is not a secret, but a balance of supply and demand. The sums is not a good thing, but it is always necessary to print more money, so a dollar will buy yesterday to adjust inflation. All the residents at the same time the earth need every day more and more money.

However, not everyone knows what it means to a national debt. Owe a debt? What is today’s “debt ceiling”?

One thing is clear: when the supply is exhausted, printing more money is not a bad solution. The world population growth, need more and more money to provide services for the growing consumer groups. People consume more, live longer, and children. Because the dollar is still the global reserve currency, so every new kids need to print more money, this is every time we see a problem in the United States Congress to raise the debt threshold or the Federal Reserve announced quantitative easing scheme.

Then, the exchange rate of bitcoin and what is the relationship?

Here explained: every time the government printing money, bitcoin prices will rise. This is the final result, because bitcoin does not depend on the cost of the goods and its purchasing power without any restrictions. A year ago, we can use a bitcoin to buy $1000, and is now $300. Tomorrow is $100 or $10000 is possible, but in the long run, every time someone printing money bitcoin will increase.

We can say whether bitcoin will grow faster or slower than gold? Yes.

Bitcoin’s growth rate will be faster than gold, because on earth there is a lot of gold and gold jewelry gold more than 50% of the market, and have a fixed price. The gold will become two times today. This will trigger a direct reform of gold jewelry market, the duration of this reform will be “stuck in the price”.

At the same time, bitcoin market is almost non-existent. All products are in US dollars, but bitcoin is a bargaining chip. Each bitcoin may be determined by the market value of $.

As the company’s IPO, bitcoin will increase. When the market risk appetite, the new currency unit through the stock of raw materials, and of course the most mobile and independent value of bitcoin store intelligent investors.

转自:hello-n@比特头条

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