Correlation between the Fed and the bitcoin interest rate
Yesterday, the news media have reported that the Fed rate hike news, the specific content is about “3 20 in the morning Beijing time, the Fed announced interest rate hike is scheduled to 25 points, the Fed interest rate is four times this year, 2015 year 12 month open 9 increase monetary policy tightening cycle.”
As between the bitcoin virtual currency and the Federal Reserve had no correlation. Here to talk about.
First, the Fed rate hike means what. The interest rate is a country or region central bank Raise interest behavior, so that commercial bank To the central bank raise borrowing costs, forcing the market interest rates also increased. Interest rate include the reduction of money supply, depressed consumption, depression Inflation To encourage savings, reduce market speculation and. The interest rate can also be used to upgrade the country or region For money Other currencies ( exchange rate The indirect method).
The Federal Reserve is the Central Bank of the United States, is independent of the government of the United States, which is fed with the trend of interest rate table, trump will use his “Twitter policy” attack rate.
Trump in the interest rate announced the day before on Twitter to put pressure on the Federal Reserve, said the rate hike is a mistake, because the Trump administration wants to stimulate the low interest rates on the U.S. economy. However, the Fed’s monetary policy, taking into account more dimensions and comprehensive long-term impact. Did not succumb to U.S. President Trump. The Fed chairman said “political considerations will not affect the interest rate decision”. The interest rate decision announcement, U.S. stocks volatility after the Dow 900 earthquake, the night before the opening of the U.S. stock market also rose, fell sharply after the Fed announced interest rate hike, the three major indexes fell more than 1%, more than a year low.
Two, bitcoin Fed rate hike. Bitcoin is proposed to Nakamoto in 2009. When the background is broke out in 2008 The global financial crisis The economic crisis, the Fed implemented a QE (Uuantitative Easing, QE), the popular saying that “printing money”. The “quantity” is to expand the amount of currency, “loose” is to reduce bank reserves must inject pressure. This is for the Fed’s “interest” “cut” interest of conventional means the effect is not good under the condition of extreme use. The central bank purchases of government bonds, through open market banking financial assets and other methods directly lead to the increase of money supply, the money in disguise”.
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The Saviour of pills and used by the Fed is not authentic, because the dollar is a global currency market, no matter what is the amount of money to increase, mainly in bonds and debt situation in the global circulation. This is the U.S. government bonds or debt write IOUs to the Fed, the fed to the government printing of dollars. Is equal to the global help Americans pay.
While bitcoin is in such a case, someone with 2009 years” Satoshi Nakamoto The pseudonym published a paper describing the bitcoin mode. The new payment system and the bitcoin model is developed in this background, achieve to the center (not to print on the printing) and can not over, the books open and transparent, and the accounts can not be altered.