• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
Nexo

Bloomberg Ironically Makes the Best Case For Crypto by Condemning the Fed

Christina Comben by Christina Comben
2 years ago
in News teaser, News
0

Bloomberg may have just made the best possible case for crypto. In an opinion piece for the mainstream news outlet, the writer points out that, “by throwing trillions of dollars at the coronavirus problem, governments risk undermining trust in currencies.”

Doing ‘Whatever It Takes’ May be Good for Crypto

As the Bloomberg piece points out, governments pledging to do “whatever it takes” is “going to cost a lot of money.” This is extremely concerning as it highlights how meaningless money is and it starts people thinking. After all, if the Federal Reserve can simply create trillions of dollars out of thin air; why can’t they just print money to pay for other things, like taxes, and healthcare, and, maybe a wall at the border.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Since before the 2008/9 crisis, Bloomberg found that 12 major economies including China, the U.S., the eurozone, and Japan had already “more than doubled” to an astounding $80tn. They point out:

These numbers are so large that they no longer have any meaning; they are simply abstractions. It’s been some time since people thought about the concept of money and its purpose.

Here comes the clincher and sounds a lot like something Warren Buffet would say about crypto:

The dollar has no real intrinsic value, backed only by the full faith and credit of the U.S. government.

Will There Be Hyperinflation in Major Economies?

There is no easy answer to that since we are still currently riding into the crisis. No one is quite sure how things will pan out, although, the outlook is not exactly rosy.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

It’s hard to imagine a superpower like the USA experiencing hyperinflation like Venezuela or Argentina. However, that kind of sobering scenario isn’t entirely off the cards. After all, too many dollars in circulation will only diminish their purchasing power.

Bitcoinist spoke to the lead economist on The Marshall Islands crypto project SOV, and former Secretary-General of the BIS, Peter Dittus. He authored a book in 2017 entitled Revolution Required: The Ticking Time Bombs of the G7 Model in which he highlighted the irresponsibility of key monetary polices. When asked how he felt about the current situation and massive stimulus packages being thrown at the problem, he said:

I think the current situation basically has pricked the bubble, it could have been something else but now the governments are following up with more. I think in the current situation there’s not really much of a choice. However, the interesting thing will be to see how we come out of the crisis. 

He goes on to explain that after the last crisis, there was also a huge increase in money supply which was then fed into asset prices and other areas.

They didn’t withdraw the stimulus, there was always more and now there’s a huge amount more and the question is what happens at the end of that crisis? Are they going to withdraw it or are we going to see something like defaults on a large scale, or will there be significant inflation… Something is going to happen if we are not careful about when we come out of the crisis, but it’s early days.

As Bloomberg points out making its best case for crypto yet:

The three main functions of a currency are as a unit of account, a medium of exchange and a store of value.

Excessive money printing of the USD has flung front and center the fact that it is fast losing its ability to act as the third. Now is the time for crypto to come into its own with no Federal Resevee or central bank debasing its value for holders from one day to the next.

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Christina Comben

Christina Comben

Related Posts

US Justice

US Justice Department Executes First Criminal Crypto Charge

4 hours ago
Terra

Terra Flaw: Ethereum Creator And Binance CEO Slam Terra Via Twitter

7 hours ago
Twitter Shares Shed 20% As Elon Musk Says $44 Billion Takeover Deal Postponed

Twitter Shares Shed 20% As Elon Musk Says $44 Billion Takeover Deal Postponed

3 days ago
LUNA

Will Terra LUNA Go Extinct After Being Delisted By Binance, Bybit And eToro?

4 days ago
Robinhood

Robinhood Shares Rally 20% After FTX Founder Sam Bankman-Fried Acquires 7.6% Stake

5 days ago
LUNA

LUNA Sinks As Binance Suspends Withdrawals Of Tokens Amid Market Turmoil

1 week ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.