Bitcoin Forum

That's not bad for bitcoin
Its very good to btc hodlers whos not located in USA but hodling the btc.
So if USA keep printing and keep giving out stimulus we are all good.
I hope that after this stimulus will push btc up there will be more stimulus rounds to go.
First 3 T i hope it can be nice warm up! And I hope USA will contunie this stimulus tradions!

Any little helps for btc price to go up

The last time it has given the stimulus, IIRC, there's no effect. The logic applies that it is going down(US dollars) if they keep on printing and distributing it to their people but the purpose is good but the effect on their economy is bad.
And in bitcoin's economy, it is good because it is becoming the newly found wealth of those who have received it and decided to invest in bitcoin. We knew it that inflation would be the effect of their continuous printing and on the side of bitcoin, an increased price.

Yo, hyperinflation is imminent if the US kept on printing money and not paying debts, so bitcoin may not be affected, but countries who are dependent to America will be. And with this the world economy will be in shambles as USD is a major anchor of most currencies in the market. So you still would have tp worry.

Hyperinflation might happen, but there won't be much impact over the cryptocurrency market. Once after the sworn of Biden he has halted all the administrative decisions that were kept prepared by the Trump government. Amongst is the cryptocurrency related decision, and now Biden has stated it to get executed only after perfect review. This is truly a positive sign for the growth of cryptocurrency market with the present government. We don't know what way they've planned the economic upliftment, but there is less chance of disturbance to the cryptocurrency market.

OP, you really seem to be fixated on all this stimulus money the US is giving out.  Are you even a US citizen?

Ah, to the contrary.  If the USD were to suddenly experience a hyperinflation scenario, my guess is that assets like bitcoin would soar--along with gold and other tangible assets.  But as much as I'm a fan of bitcoin, I don't want to see any such thing happen to the USD or any of the major world currencies, because that would mean the world economy is in serious trouble.

And yet....I don't see how we're going to be able to avoid at least very high inflation with all of this money printing and stimulus, unless the government raises taxes like crazy once the economy is stable, or if they figure out a way to cut spending without whacking the bee's nest that is the US government, where nobody wants their own funding cut.  We're in 2021; it should prove to be a very interesting decade.

Il m not us citizen.
But it doesnt matter bitcoin is like way to grab your funds from stimulus even you not in USA :)

I've read about the latest news too, actually I feel very positive about Biden. But what current prices are reflecting, people are worrying about something or we are affected by the fighting fish and prevent the price from going up. If the scenario is according to personal guess, the team working under Biden will be the stage, this school is very developed.

I'd rather they avoid doing another stimulus and instead approach the issue from a possible alternative point. As much as inflation could boost BTC price, it isn't really something I'd really want to experience, nor let others experience it. I won't be directly affected, yes, but there would still be some, and I honestly don't know how big those effects are, so I'd rather not take the risk.

Though it is indeed unavoidable at this point, I do hope Biden could do something to at least lessen the damages that it could bring. Hope he doesn't just think for his own interests.

Even without the stimulus I expect Crypto to have free ride during Biden administration, money talks in politics, some of the big guys in the Crypto space are strong Biden donors and they will likely influence the decisions that will be made about Crypto in the future. Crypto has created many millionaires and I expect us to dictate the future of this century. I read today that one of the former Ripple advisor is being nominate by Biden, you can't expect them to be talking bad about XRP in their meeting and expect him not to push back

I see printing of currency or fiat currency to be a very wrong strategy for an economy, being USD or any other currency. It will cause inflation, as the current inflation rate of US economy is very low, that makes the economy stable but with continous printing the value of $ will deplete and so will other countries economy be affected as the USD is their reserve currency.

I feel the reserve bank board may need to reconsider this monetary intervention policy.

If Biden's administration pass on a bigger stimulus, imagine the direct effects to those who will be on the receiving end of the money. They will realize that the bigger number doesn't really change a thing, as the value has already plummeted down once the money is out. True that it might cause some good rides for bitcoin and the cryptocurrency market in general, but you don't really want to see the after-effects of inflation coming into full play. The US is on the edge right now in terms of its domestic economy, and even though the stimulus fund is expected to stimulate the domestic economy, you can't really force people to spend it on things that you want the money to go to.

No Biden may not continue for long. I think he might look for quicker measure than continuation of the package because of covid-19. Such ways he could work on is to ensure more  drugs for prevention and cure flood into the market. Is better to increase the provision made for research on covid-19 than to rely on stimulus because that will later increase inflation.

I think this is just a gift for all the people who voted for him. He already promised during his campaign to hand out more money. The corona pandemic is still forcing many people into lockdown and this stimulus package is actually a good thing. In my opinion giving the poor and middle class families money would help everybody because they definitely need the money and will likely spend it very fast. So the money goes back into circulation and helps the economy.

I don't know really understand how USA is able to print so much money , maybe they are using all their supplies and securities that they had and now I genuinely thought that it would for sure stop at the second or the third but it continues to baffle me.

Will the price of the dollar fall?
Will people invest it into bitcoins ?
Will the stimulus reach the homeless people too?

There are certain websites which do provide a detailed idea of if the person qualifies for a stimulus or no at the same time we have not seen a significant improvement in the COVID cases in the US. They still have to work hard towards that , maybe give people masks and sanitizers with the stimulus. Don't know really why people hate masks there though.

A small quote from a website :


This is to be expected for sure. We don't know really how far this will drop to.

Let's not worry about this the fed knows better what they do it.
Also they keep inflation  on 2% level if the inflation reach to 2% or over they stop printing...

First People dont know how the btc price come then they Say also wrong things about money and simple things!!

Omg how bad the schools have prepared People!

Biden stimulus may and may not impact the Bitcoin market cause some individual in the US may follow the footstep of the institutions by using Bitcoin as their reserve fund or asset since the stimulus provided by the President was to provide help to the eligible or vulnerable Americans who are per food and safety provision for workers on their job.

they're gonna jack up our taxes, and then throw us back some crumbs in the form of a stimulus check---great! ::)


if stimulus money pumps the price of bitcoin, i guess it doesn't matter where he lives.

even if not many people put their stimulus checks into bitcoin, dropping helicopter money on people removes pressure to sell off their investments. that pumps all markets, including bitcoin.

It looks that Biden insidation in the white house could increase our gain with BTC, I hope in the increment of liquidity. If everything will go in the right way we can see  BTC ate $ 100k before the end of the year! Long live to Biden economy and btc pump

Printing too much money will only make the US a country that has a devastated economy, but we will not be worried that if the USD fails, it seems that there is already a substitute for another currency that is ready to replace the USD to establish relations with all countries in the world

it is all the money that the previous administration minted and now they are (as i have said many times before) slowly entering circulating and eventually contribute toe the inevitable inflation that the US dollar is going to experience.
but this is not a US specific case. the rest of the countries have been doing the same crazy thing for the past year. they keep printing a lot of money and hand it out to try and reduce the effects that the pandemic had on the economy. eventually all contributing to the inflation.

You know.... all these stimulus boosts, looks like a farmer stuffing a pig with food to fatten it up to eat a bigger animal later. The US government are giving this in the hope that it will stimulate the US economy to a level where they can once again increase the taxes to a much higher level, where they can eat huge meals at a later stage.  ::)

A weaker US Dollar will just hurt the global economy, because a lot of the struggling third world countries are also using the US Dollar and they are just going to struggle more now. (Zimbabwe is one of those countries)  ::)

On the other hand.. a lot of them are going to start buying Bitcoin, because they will anticipate a economic collapse in the future and they will be looking for a safe haven like Bitcoin.

Hyperinflation comes of Old money and new money reaction.
Like a Cold and hot makse thunderstorm.

This is why we have mega rally last year, we are going to see influx of these money into the space this year, anyone still doubt if he can make money from the space this is a huge signal to join the train now before the train start. If people are comfortable investing into Dogecoin of all Altcoins, just imagine what would happen when they know Cryptocurrency better

Just recent news on the house that there will be another 'smaller' stimulus checks that are on their way. That's around $1,400 per beneficiary.

House gives final approval to budget plan including Biden’s $1.9 trillion stimulus, fast tracking the process. (https://www.nytimes.com/live/2021/02/05/us/joe-biden-trump-impeachment)

And that means that we're going to have a pump soon?

Lol I don't get where are they getting all these money printing orders from? And when they are doing this, isn't it a debt that is being levied on innocent people's head? When this stimulus circus ends, what will happen? The people who invested in btc today will start pulling out fiat by converting their btc and this will not be good for the price in long term.

People don't think about the long-term impact, when they get their welfare cheques. Anyway, most of the stimulus funds are going to end up with the big corporates (similar to what happened after the 2008-09 recession). The only difference is that the entire debt burden is added to the future generations, while the corporates don't have to pay back any of that money. The common people will suffer from the devaluation of their assets as well. As the governments print banknotes like crazy, the value of bank deposits and other assets will go down proportionately.

The upcoming stimulus bill will likely have a positive effect on Bitcoin, but it won't be beneficial for the US economy and may lead to hyperinflation.

No, it won't lead to an inflation but if they continue not addressing the situation of printing money, a collapse is imminent. In short term, there won't be an inflation but that will just be a temporary fix, what USA needs to do right now is to have their people listen to the people that knows better in the pandemic, with more people not following the guidelines to prevent the further spread of pandemic then the further they go far from opening the economy without worrying about the virus. I do agree with the stimulus, definitely a lot of people who missed out on buying on the first stimulus will have to get in while bitcoin is still not that fairly high.

Inflation happens when everyone has excess amount of money that they can spend so prices of things get higher and higher. When you do a stimulus and everyone barely has any money and they spend it on things they can barely afford right now but common things otherwise, stuff like groceries or bills they have to pay or rent, those things do not cause inflation at all.

You have to realize that inflation is only caused when there is excess amount of money, there isn't excess amount of money anywhere right now, all the money is basically "gone" right now, and people are unemployed or even starving, so having that extra stimulus is definitely not something we could argue right now, it is definitely something everyone needed and it will be used for things that are needed and not things that are luxurious, hence why it won't lead to inflation at all.

Are the Americans capable enough to go out and ask their government for the breakdown of all the stimulus they have sent and cross-verify it till the whole balance sheet tallies? Impossible. So wherever it will go, it will depend on the interest of people who will be the deciding factor for buying btc because it is too high and now looking favorable for institutions only, and I think they will not FOMO in.

Practically stimulus would never end obviously it's the very necessary requirement of any economy in normal circumstances. But do you have any specific statistics on the effect of this stimulus on the overall price of bitcoin? I think this slight stimulus which isn't like even 1% of the total supply could have a huge effect on the price of BTC. Often the impact would be so minuscule that it would get absorbed in the huge waves that bitcoin is having these days. Stimulus by govt. is pretty different from Bitfinex printing more tether. Also as all the major currencies these days are paired in USD and have international loans outstanding which are to be repaid in USD all these countries and citizens of these countries will be affected by the prices too.

It's theoretically right, but I don't think a lot of people will invest their checks in Bitcoin, most of them need this money to survive.

...

My best guess is that the stimulus packages will not work (or at least well) in the short term.  While some will be spent by the poor of course, there will be a lot of that stimulus money paying down debt and/or saved.  The two latter actions REDUCE money velocity, which is one component of whether there is inflation, lower money velocity is DEFLATIONARY.

The people are now in shock over the bad economy and its prospects.  Many of us (inc. me) are going to spend LESS in coming months, already are.  But, deflation can be beaten by determined governments and central banks by aggressive printing of more and more money.  In the words of the last head of the European Central Bank, when questioned about avoiding deflation he said:

"Whatever it takes"   (to avoid deflation, which is very bad for governments)

But, such aggressive printing to kill deflation very often leads to hyperinflation later.


TL;DR

I expect some sort of deflation period to then be followed by high inflation or even hyperinflation with the Biden stimulus packages.

This never ending cycle of stimulus and the unlimited printing of banknotes without any restriction will destroy the purchasing power of fiat currency. Once the politicians indulge in freebies, they can never go back. Because the population will demand better and bigger freebies next time. Tesla management has become the first company to convert a part of their cash reserves to Bitcoin/gold and in the future I expect a lot more companies to do the same. It is very simple. These companies no longer trust the US Dollar.