Cryptocurrency

Bitcoin Boost by helicopter money & Angela Merkel speech?

The Coronavirus has the world firmly in its grip. This applies not only to the public life in General, but also for the economy, the financial markets, Gold and Bitcoin. Daily news about new mitigation measures, as well as to support the economy and the financial markets in the round. You no longer follow with a bulleted list at all. Excited, the Federal Republic was now waiting for the TV-speech by Angela Merkel to the Corona-crisis.Central banks and governments around the world declare a further interest rate cuts, purchases of assets, such as bonds or shares, tax relief for companies or emergency loans. A measure which was considered by many, actually, as one of the toughest and last of the measures, to be implemented in the United States now: the helicopter money.Thus, a new Phase begins the state monetary policy, can bring our entire financial system in the long term, even more shaken than I already do. What’s up with that and why the Bitcoin in the cards, you will learn in this article.

Drastic measures in the fight against Corona

Anyone who has followed as a Bitcoin Fan, last night live press conference of Donald Trump and his Finance Minister Steven Mnuchin, on or after the clips and press articles to read, could not believe his eyes and ears so completely (so it went in any case, yours truly). The USA want to distribute “immediately” in the course of the next 14 days money to its citizens. This is supposed to happen in the Form of Checks that can be, according to some Reports, up to USD 1,000 per Person.To Steven Mnuchin says:

We are considering to send the Americans immediately checks. (…) The Americans are now in need of cash.

The money is intended to serve that Americans who can no longer go to work due to the shutdown or have already been dismissed, can you continue to live financially best. The payments will be according to the current state only once once. However, since it is not expected that the Situation in a couple of weeks has completely normalized, it is unclear whether such payments may not be made on the regularity.Despite the significance of this News by no means represents all the measures. As the “Coronavirus Task Force” decided in the United States also can move the people and companies your tax payments up to an amount of 1 million and USD 10 million. In addition, a stimulation is a total package of 850 billion USD decided to take the further action includes.

“The most severe crisis in 70 years” – Angela Merkel speech

Curious, the Nation has been waiting for the speech of Angela Merkel. There will also be helicopter money? We follow lock France and Italy with the output? What’s next?While the Federal Republic of thirsts for answers and in the matter of toilet paper in a panic expires, the Chancellor reserved and careful. The statements are clear, we are according to Merkel in front of the most severe crisis in 70 years. Who had hoped to helicopter money, also from Germany, was disappointed. A threat of a curfew is also off the table for now. For both measures, the emphasis is on “first”.According to Handelsblatt, and ZDF, Chancellor Angela Merkel appealed to the reason and seriousness of the situation:

“Stick to the rules that now apply for the next time. We will consider, as a government, always new, what is correct, but also what might still be needed“.

Support in the Form of money, there will be but nevertheless, because of the crisis-ridden company Angela Merkel promised in her speech:

“The Federal government is doing everything it can to the economic impact – and to preserve jobs”.”We can and we all will use, what it takes to help our entrepreneurs and workers through this difficult exam”.

But what means a further flood of money and helicopter money from the United States for the Bitcoin?Trade on the worlds leading Social Trading platform!Join the millions of people who have already discovered how it smarter to invest by copying the best investors in our Community, or be copied and as a result, a second income can be achieved. Start now!

Why Bitcoin is more important than ever

What appears to be one or the other, perhaps, than “nice”, is on closer examination historically. The measure calls taken by the US government’s “helicopter money” and so was not carried out in the Form. Helicopter money has only been in the last few years, as an extreme measure of expansionary monetary policy is considered and a bullisher case for Bitcoin.The goal is to not only attack the citizens financially, but also by an increase in consumption, the real economic spending boost. In addition to the “Quantitative easing” and “negative interest rates” is helicopter money is actually one of the last monetary policy measures. So right and important step for suffering Americans like to be in the current Situation, so devastating he could be for the financial system. Bitcoin, however, will benefit more.

Bitcoin Boost by helicopter money?

Because the “Gift” of money to the citizens, it will increase the money supply and the currency in the long term through Inflation devalued. These effects are, however, only after months or years. In addition, new money is also created by other monetary policy measures, such as emergency loans or bond purchases “printed”.Just in the Crypto-Community, these measures are, therefore, a clear pro Bitcoin Argument, and a sign that BTC is more important than ever. Because Bitcoin cannot be created out of Nothing. Many BTC Fans a “I told you so now” mood.

In addition to the risk that these extreme monetary policy measures of our financial system, there is yet another risk factor.If the economy is so highly restricted as currently, companies make less revenue, and private individuals have less money to Spend. As a result, many are no longer able to service their loans. This in turn makes banks in trouble, which would then have to be rescued by the state, which added to the financial system.Depending on the course of events in the next few weeks and months it can develop very quickly to a downward spiral, which is then, in turn, is a clear selling point for Bitcoin. Because exactly for such a scenario, BTC has been in the financial crisis in 2008 by Satoshi Nakamoto invented. Bitcoin as a crisis hedge is more current than ever.

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About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.