A reaction occurred on Twitter in favor of Bitcoin after the chairman of the Federal Reserve (Fed) of the united States, Jerome Powell, was interviewed last Sunday, may 17 in a program of the television network CBS, where he admitted that the central bank is creating dollars from zero to a rate that is unprecedented. The measure responds to the many tools that is driving the government to rescue the economy in the midst of the pandemic by coronavirus.During the interview, the host of the program “60 minutes”, Scott Pelley asked if it was correct to say that the Fed simply flooded the system with money”. To which Powell replied: “yes, we did. We print digitally. As a central bank, we have the ability to create money digitally. And we do that by buying Treasury bills or bonds or other securities guaranteed by the government, and that actually increases the money supply. Also, we print the real currency and distribute it through the Federal Reserve bank”.Then Pelley asked the interviewee to explain how it relates to what the Fed is doing at the present in front of the coronavirus, with respect to the unprecedented action it did in 2008. Then, Powell pointed out that the things that they are doing now are substantially larger. Also, he urged lawmakers to work harder to “avoid damage to the economy in the long term”, and suggested that the stimulus measures may be needed for three to six months.Powell also said he does not believe that a “second Great Depression” is a likely outcome “at all”, citing the facts that the current crisis is caused by a stressful external, not a failure within the financial system, and that the united States had an economy “very healthy” just two months ago. He warned, however, that a full recovery might not be possible without an effective vaccine to contain the coronavirus.As a measure to reduce the way in which the coronavirus is impacting on the economy, the Congress of the EE. USA initially approved USD 3 billion, but another 3 billion dollars were approved last Friday by the House democrats, although these funds are paralyzed in the midst of a partisan debate.According to the data of CryptoCompare, shortly before the broadcast this 60 minutes episode, Bitcoin is was priced at around USD 9.637, but two hours later towards the end of this episode, Bitcoin is listed at USD 9.925. At the time of writing of this note, the first of the cryptocurrencies is listed in 9.645 dollars.
What gives the Chairman of the Federal Reserve hope during the coronavirus pandemic? https://t.co/6sGfXKwdon pic.twitter.com/ujZfqIG1r5— 60 Minutes (@60Minutes) May 17, 2020
Heads turn toward Bitcoin
Bitcoin certainly was not even remotely in the mind of Powell while this was launching his statements in the programme of the CBS, however, it is remarkable that there are more and more people in the world who understand the implicit message associated with the ads which, in these times of pandemic, they are doing the central banks to justify the printing of money to save their respective economies, which highlights the shortages of the economy that is based on the protocol Bitcoin.While the president of the Fed made official the fact that the united States is printing more money than you need to, on Twitter produced a reaction that stresses the benefits of Bitcoin due to its scarcity as a fundamental part of their economic system.A user of the network of microbloggings wrote making reference to the words of Powell: “the fact that you talk well in public is revealing. No longer can you hide it. More and more people will deepen in how does it work the monetary system. I guess some will end up buying Bitcoin.Another user tweeted with irony about what you think will be the consequences that will remain after the economic measures taken by the FED: “historical highs in unemployment, record highs in the shopping of panic induced by the Fed, all-time highs in a gap of wealth unearned, undeserved, minimum of all the times in national integrity. Care or hope. What can go wrong?”.At the end of march after the Fed announced measures that would be taken to protect the economy from the impact of the pandemic, Bitcoin bounced back 10% in a hour as reported Breaking News. At that time, the price of the main criptomoneda went from 5.866 to 6.464 dollars. With respect to a possible economic recession, in another publication were consulted a variety of specialists that describe how you could react the main criptomoneda faced with a scenario of global crisis.