20 Trillion Reasons to Own BitcoinThe printing of more than 20 trillion dollars in cash by the Fed, as Winklevoss pointed out (apparently using older data from 2012), only increases the overall amount of dollars in the U.S. economy. The problem with this overzealous printing is that the economy has not kept pace with this level of monetary creation.
The result is that the ‘balance sheet’ for the U.S. economy has risen to a level three times greater than it was at the time of the crisis. Essentially, while some production has increased, the net result is that each dollar is worth dramatically less than it was at that time. The reality is that, when the crisis occurred, most argued that injecting liquidity into the system was necessary. However, the Fed’s policies have seen little deviation in spite of massive market growth and economic recovery since then.
The Fed has printed $2 trillion dollars since the 2008 financial crisis (increasing balance sheet by ~3x). 2 trillion reasons why you should own bitcoin.— Cameron Winklevoss (@cameron) October 20, 2019
Short the FedInstead, while most would have seen a reduction in liquidity generation, the Fed has done the opposite. The net result is the potential for massive inflation and the eventual loss of the value of each dollar. The answer from Cameron Winklevoss is to buy Bitcoin. Because Bitcoin is wholly unregulated, it is protected from government interference. Ultimately, inflation within Bitcoin only happens through block generation, forcing a gradual and regulated increase. Do you think Bitcoin is the answer to the unmitigated Fed financial liquidity? Will the Fed be able to turn the ship around in time before inflation decimates the economy? Let us know your thoughts in the comments below!
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.