The pressure on the major economies of the world grows. This is clearly to the monetary policy of the Central banks in recent years. Bitcoin is supposed to solve this Problem.
The geopolitical tensions may have eased in recent days, the economic have it, however.
US President, Trump may say about how strong the stock market is at the moment – but he failed to mention the declining strength of the dollar or the escalating monetary injection implemented by the Central Bank in the name of quantitative easing still.
According to the “Wall Street Journal” were sprayed last week, another 41 billion dollars of the New York FED in the financial markets. By this the current Repo interventions in bonds of approved banks for short-term loans from Central Bank absorbed money that is secured by the securities.
The Central Bank has injected since September money in the markets, in order to keep liquidity high and to give the banks the opportunity to make more loans. This increases the total debt.
The analysts of TD Securities, according to the commitment of the FED in the Repo was not completed-the market also for a long time. It is expected that you will at least make it to may 2020, which reinforces the “safe investment”Thesis for Bitcoin.
According to the Figures, the national debt is now staggering and 23.1 trillion dollars – and rising. Trump has taken since his inauguration in 2017 to 4.7 trillion dollars in debt. In comparison, this would push the price of a single bitcoin at $260.000.
Last month, the world Bank has issued a clear warning. Accordingly, the debt has grown wave in the Emerging and developing countries, faster and larger than in any period over the last five decades, and could end up with another crisis.
The IMF also reports that the total global debt has risen by the end of 2018 to 188 trillion dollars, equivalent to about 230 per cent of the world economy.
Bitcoin solves this Problem
The USA with its monetary policy madness of the Central Bank is not alone. A similar Situation has developed in China, where the annual growth is long, strong economic slow down. The following graph shows, what have the done Central banks in the last few years:
“The Central banks around the world have pumped tons of liquidity in the markets to dampen the volatility.”
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Recent reports suggest that the “People’s Bank of China” will have to begin to reduce the share of deposits that commercial banks as reserves. This would effectively put billions of dollars for the financial system to boost economic growth.
This is important for the major economies of the world, as Central banks manipulate Fiat financial systems, in order to keep themselves above water, when all the signals are flashing red.
Bitcoin solves this Problem by is the only form of Currency with a truly finite supply, which may not be of an overbearing authority manipulated. Through his Design he tried to evade the well-established financial institutions in the world the trust and put the Power back in the hands of the Individual.
As Satoshi Nakamoto wrote a decade ago – according to the recent Bank-induced financial crisis:
“You must not trust the Central Bank that devalues the currency, but the history of Fiat currencies is full of breaches of that trust.”
In the first few years, everyone who had a Computer and an Internet connection could contribute to the Bitcoin network and directly to the creation of new Bitcoins will be involved. This was the first Time that the creation of currencies was for a global audience, and not only for government authorities.
In connection with the immutability of the Blockchain, Bitcoin was the first completely transparent and incorruptible currency.
Up to today, Bitcoin is the only currency that can’t be eased by global institutions on demand in a quantitative way.