Liquidity drying up due to the falling credit ratings of subprime assets and the bailout is a different topic from QE
QE is not sustainable because the inevitable transition to a global bitcoin standard will mean that monetary policy is algorithmic, unalterable, and does not allow any alteration of the money supply. This relatively small period in human history where states are able to print money is coming to an end. Future generations will read in disbelief how a council of elites was empowered to debase savings with the wave of a hand. At some point it becomes irresponsible/negligent to not have a position in the best performing asset of the last decade. I feel regret that misinformation like this will prevent many from getting in early. The purpose is to preserve value through space and time for future exchange.
And based off that tweet, that’s not a good use for future exchange when the price is so volatile. That’s not a characteristic of a good currency but a risk asset. The fact that Bitcoin has a limit will make it deflationary.
QE isn’t happening, it’s being confused for normal Fed moves. I don’t think you understand money, as the money supply is being constantly altered and needs to do so in order to meet demand. We are way past “getting in early”. Plenty of other risk assets to make money off of.
The bailout was about preventing the collapse of the banking system. It wasn't about just liquidity, it was about buying toxic assets from the banks where as QE is about financial stimulation after the fed funds rate can't go any lower. https://en.m.wikipedia.org/wiki/Quantitative_easing Expansionary monetary policy to stimulate the economy typically involves the central bank buying short-term government bonds to lower short-term market interest rates. However, when short-term interest rates approach or reach zero, this method can no longer work (a situation known as a liquidity trap). [I[edit: you've already made the distinction of the federal reserve from the rest of the government. Which of these entities, central bank or government, bought the toxic assets in the bailout?[/I]
PGab's cutting n pasting disjointed info removes all doubts in his previous posts, he had shown that he doesn't understand what Fed Fund Rate means! in his most recent post, he is publicizing that he doesn't understand what liquidity means!
I wonder how Bitcoin will operate across countries or even regions with different standards of living. We take a lot of things the Fed does for granted. When Greece was melting down, the ECB didn't have the authority to provide direct relief to the PIGS economies. A country outside the Eurozone would be able to let their currency weaken to improve trade whereas the Euro was suffocating recovery to those countries because Germany was the James Harden of the Eurozone. The Fed handles regions pretty well so enough that a dollar in California is still a dollar in West Virginia. I wouldn't know about this if the Euro wasn't a rocketship without a steering wheel. Wouldn't it be like Argentina pegging to the dollar? Would it be different to peg a currency to a cryptocurrency? Standards like gold or Sterling are only propped up by those in power.
That's the process of monetization/adoption. Volatility goes away once adoption is realized. Precisely, people will store value in an asset that appreciates because it can't be debased. It's inevitable.
If it’s adoption as a viable currency actually happens. Still not remotely competitive with the USD as a currency. And if you know something will be worth more tomorrow, why use it today? Deflation is a terrible thing and is far worst than inflation.
Policy discussions like this will soon be academic. People are going to transfer their wealth to the currency/asset that holds it's value the best (why wouldn't they?) Central bankers are powerless, and will have no control over monetary policy once full adoption is realized. Pegging a state currency to bitcoin would be redundant and inefficient.
Lol. So before the massive run up you heard this? I’m sure those who bought in at +10K feel the same way.... Cryptocurrency looks like a biotech stocks
You not responding directly to me says something about you. I quoted a straight paragraph and didn't put anything together You brought up the bailout. Was the bailout initiated by the federal reserve or Congress? A simple question
Because there is a cost in time to not using it today. Same reason you buy a smartphone now for $500 that will cost $50 five years from now. Statists can scream this as loud as they like that stuff getting cheaper and savings having more purchasing power is a terrible thing. But individuals are going to store their fruits of their labor in whatever holds value best through space and time.
we are still early on the adoption curve think about how people perceived the internet 10 years into it's existence. That's where bitcoin is
