Bitcoin Forum

So the $1.9 trillion stimulus bill has passed the senate and is now nailed on to be signed off by Biden on 14th March.

I was wondering what effect you think this will have on Bitcoin over the coming days, weeks, months and even years? It doesn't seem to have made a huge impact straight away, I guess this is because people were expecting it to happen anyway but surely as the stimulus starts to take effect over the next few months, inflation is going to become a huge problem for any individuals and companies who happen to be sitting on piles of cash. Will the government be able to stop inflation from running out of control or are Bitcoin and crypto holders in for the treat of their lives?

https://eu.usatoday.com/story/news/politics/2021/03/06/bidens-covid-stimulus-bill-passes-senate-legislation-heads-house/6886446002/

The impact won't be seen now. It'll be seen after the crisis is gone. The money printer can't run continuously without consequences, that's for sure.

On Bitcoin, the impact it might have is that BTC's price will probably rise as soon as the money starts losing purchasing power. That is if people treat Bitcoin as a safe haven and hold on to it for hard times. If USD loses purchasing power and hyperinflation (because I'm pretty sure pumping this many trillions of dollars leads to it) will make all prices go up, together with BTC's. By how much or when.. that's uncertain.

It depends. The impact of the stimulus package can be seen on bitcoin right when people get a hold of they freshly printed Dollars. There's a theory, backed by surveys, according to which a large part of stimulus giveaway to end on Bitcoin exchanges. We'll see how it goes but if I were a person who has enough money to go by, I wouldn't hold stimulus under the mattress but try to invest it. Some of the poorest will probably spend it, but the middle class is going to go for stocks, gold and BTC.

The government I'm pretty sure will be unable to keep the 'upcoming' inflation in check, they can't possibly print this much money without any consequences in the future, their economy will of course feel the brunt of the activities of the money printer, but then on its impact on Bitcoin and it's hodlers, i think people will have to understand that Bitcoin is a hedge to their devaluing Fiat currency, which thus could make more people put their money in the network, and that could cause the price of Bitcoin to appreciate.

They can't stop inflation, with all of that stimulus that has been made? they can only utilize and minimize it along its way but to completely stop it, they can't.
Whilst, bitcoin holders, we're also investors and we're defeating inflation through holding this asset and that's why others have come to understand that instead of using all that they receive from the stimulus, they invest a portion of it.

The printing of more money can be beneficial in the short term especially for those who literally have no way of earning amidst the pandemic, and provided that the money comes back into circulation, inflation can be prevented, but millions of Americans aren't into your typical 9-5 anymore, realizing how fickle and how fragile the concept is in pandemics like this. So, they will either store the money in a bank, or invest it in stocks, bonds, or crypto. Either way if more and more people does this, the country is on its way to economic collapse.

It's a bullish news for the crypto community. A really big one at that. I remembered last year during the times when covid-19 was biting hard and the covid-19 relief bill signed into effect, I still recall the effect it had on the crypto market. So I want to believe that we'll see a similar effect this time as well. Let's not forget that interests in cryptocurrencies have more than doubled between that time and now so it's more than likely that majority of those funds will be channeled into various crypto projects especially Bitcoin.

Short term good for Bitcoin as you'll see a lot of allotments of $1400 being deposited on crypto exchanges when the money starts going out. It'll also of course help out the economy which means more jobs coming back which means more people doing well nearer in the future which is of course good for all asset classes.

Medium term good for Bitcoin as it'll push more institutions into Bitcoin to protect against the perception of the dollar's value being inflated away.

Long term good for Bitcoin as more people will realise how great Bitcoin is and the number of corporations will see the value as well and buy in to keep up with the market. Also if global financial markets break down and central banks are unable to keep up, bitcoin is the only money to survive this.

The more fiat money to be circulating on the economy, the more activities that can be stimulated hence there can be a little uptick of growth in many good areas. As to cryptocurrency, there is a good chance that a little percentage of this money from the government will eventually end up in cryptocurrencies especially Bitcoin. As to the long-term effect, well I am not good at that so I am just leaving to the experts of this forum.

This is a good gauge:

https://www.bitcoinstimulus.net/

And as the new stimulus package will obviously weaken the US dollar more, average joe to investors will go look for assets that can they can hedge like bitcoin and gold. So this is good news for us, and we will see the correlation very clearly in the next couple of months.

Democrats doing what they are famous for. Printing banknotes like crazy and spending them in a haphazard way. The latest round of stimulus has hardly anything to do with the pandemic. It is a politically motivated measure that makes sure that the vast majority of the funding goes to blue states and inner city areas that have supported the democrats. Anyway, big spending should be good news for the Bitcoiners. And the market has reacted in a positive way. Bitcoin prices are up by 2% in the last 24 hours.

If you can survive without the stimulus, you can hedge yourself in a potential crash by investing that stimulus in bitcoin which will definitely grow as evident as the last time the people did buy bitcoin with their stimulus. I have to save more bitcoin because once this stimulus rolls out, the prices are going to be running high again.

This is the biggest stimulus package the US has ever done this pandemic season. If I'm not mistake, people will receive at least $1400 and will be distributed in April 2021.

Will this affect Bitcoin?? In some ways yes. One big effect is that it might push the price of it upwards unless, these people will choose to invest a big portion of their money into Bitcoin than spending it into another things. On the other hand, this will make the purchasing power of USD even lower. Can this event beneficial to Bitcoin and crypto in general?? Yes only if they will invest it unto it but aside from that, it will not benefit at all.

When this money be paid to people? I need to know when we will see next pump

Inflation is not something that can be controlled when a ridiculous amount of money has been being printed!
Crypto holders are not in any treat since altcoins get dumped all the time in long term. Bitcoin holders I wouldn't say are in for a treat either because during inflation when you hold something that goes up in price would only act as a way to keep the same purchasing power not make any profit. When bitcoin goes up in value more than inflation rate that is mostly because of its adoption so the profit has nothing to do with the money printing policies.

We hope this stimulus package doesn't become a target for internet fraudsters and cyber criminals that will want to hijack its disbursement. The government should do more to ensure proper verification before disbursement to any individual.

I think you might be missing the bigger picture here. Some people will invest their $1400 stimulus funds into Bitcoin but many wont, however that's not where the big money will come from. The fact that the stimulus money will devalue the dollar will encourage people and corporations who already have a lot of money to find alternative investments such as stocks, gold and cryptocurrencies. At the moment Bitcoin is a strong contender and for many investors and corporations that were considering investing in Bitcoin anyway, this could be the event that pushes them over the line.

Will he sign it or is there any chance this stimulus isn't going to happen? I mean if a few thousand or hundred dollars in 2020 passed into Coinbase and made Bitcoin go up like crazy, I wonder how much this amount of money will do to BTC price. Inflation is already bad for US dollar, guess now we see it go down like crazy?

Some of the people will put in in bitcoin for sure, but the marketcap is already so high i don't see it having a huge effect unless something else happens that makes things escalate and more money flowing in. Weirderst part is that it could affect negatively on the whole purpose of stimulus if btc goes down after people buy.

When the first stimulus was passed the price was in the $6,000 range. I’m not saying this latest stimulus will bring that kind of % price increase but more money available to so many people means some of it will end up being invested in bitcoin surely. Exciting times :)

With the latest tranche of $2 trillion of helicopter money, US Dollar is no longer a safe asset to store your wealth. So I expect a lot of people to convert their US Dollar holdings to other assets (such as Bitcoin or gold). Purchasing Bitcoin was never been more easier, with PayPal and Mastercard jumping in to the BTC bandwagon now. So we can expect a lot of people to purchase BTC in the next few months. And it's not just going to be the individuals. Corporations are accumulating BTC and I expect them to increase the pace of their purchases.

What strikes me about this is that the people who are going to receive the checks do not realize that they are going to be poorer. Feast today famine tomorrow. I don't deny that there are people who need it and can use it, but all these massive impressions of money end up in higher prices than the purchasing power. The countries in the world that print the most money are the poorest countries. It may boost the Bitcoin price but it seems to me that measures like this are like shooting yourself in the foot.

The people who receive their checks don't get poorer. It is added to the federal debt, which has ballooned to $30 trillion or so by now. Those who receive these checks can rejoice for now. But their children will suffer. And those who keep their wealth in the form of fiat currency are going to suffer, because the value of their holdings will go down. Eventually the federal debt will reach a point where it is no longer sustainable. Then we will have an economic meltdown similar to what happened in Greece and Cyprus. The government will have no other option than to go for wealth confiscation (i.e bank deposit haircut similar to Cyprus 2013).

I believe that this is good news for cryptocurrencies, as it will provide an opportunity to make another significant jump in prices upwards. As for the money itself, namely the US dollars, this will further aggravate the inflationary situation, which will certainly lead to big problems soon. But as I understand it, without these monetary incentives, everything that I described above can happen much faster and the newly printed dollars should postpone the impending problems, at least for traditional markets.

We who look at this from the sidelines, or rather from other parts of the world, might think that the US is indeed a promised land where money is literally falling from the sky🚁💸

Of course no one complains that they get checks, who would normally refuse free money - and let's be honest, who still cares that someone else will pay those debts, life is too short and what people mostly leave behind are debts and a ruined environment. It just shows that there are people who don't need such help, because who gambles with $1200 if they are hungry and need to pay their bills?

Impact on BTC? Of course, because if I remember correctly, payment analysis on a certain crypto exchanges, showed that the users actually deposit the identical amounts they received.

I cann't say how $1.9 trillion will affect btc in the coming days and weeks, but I suppose that in the long term, it will affect positively. The Senate will give this money to the population not at one time and not in one day, right. When this money is in the hands of people, then most of them are likely to invest in the stock market and more likely in btc too. I think that the bubble that arose in the stock market because of the printed money without collateral will spill over to the crypto market. Actually, this has already partially happened over the past year. But if there is more money, the bubble in the crypto market should grow even more. I am inclined to think that the current price of btc was partly shaped by the money that was handed out during the pandemic and the lockdown. Without that money, the current rate would be lower.

Every reply here has been about investing in "bitcoin"...

Even $1200/$1400 in BTC now is not going to get you any real gains? CMON.. BTC would have to hit say $300,000 to get anything that would at least support you for at least 6 months.. forget "life changing money".

Let's say BTC is $60,000 end of March... It hit's $200,00 end of year maybe... That's only 3.3x or something. Turning your $1000 into $3000 or so.?

Much better in a lower cap or mid cap like Eth, Ada, UNN :)

At this point disaster is inevitable so I have stopped worrying about what governments do and worry about what I can do to protect myself when the crisis finally looms on the horizon and politicians cannot kick the can anymore, even if we do not see an immediate effect this is going to help the price of bitcoin over the long term and even more importantly this is going to help its credibility among the rest of the population.

When inflation cannot be disguised anymore and we see unemployment and an important decrease on the purchasing power of their fiat currencies people will try to use bitcoin as a safe haven, at that point we may even see governments trying to make it illegal to hold bitcoin, but it will be too late to have any meaningful effect on the actions of the population at that point.

I don't think the effect would be seen now. Besides even if they spending power increases, it would lead to inflation, and less money to spend on crypto trades, methinks

Definitely if every other financial institutions breakdown believe me that Bitcoin won't do likewise becasue it has proven this several times on this financial institutions. Well, this news came in good time when we all needed it, hope those with the formal experience; those who miss out of the last Trump paid learn their lesson this time to hold their stimulus claque pay in bitcoin.

Of course, we are talking about investing in BTC and correlating with stimulus checks, the whole point is to try to conclude whether this helicopter money will affect the price as has been the case in the past. When you mention real gains, I know you're referring to the fact that it's better to invest in some altcoins that may increase three or four times in the same period - but even if you double your investment in the next 6 months, wouldn't that be a real gain?

Compared to investing in a bank account or putting it under a mattress, I wouldn’t agree that x3.3 falls into the category of worthless gains...

Inflation means big spending as well. Inflation occurs when people have too much money and they can afford to pay for assets that are not essential. So there is a real chance that some people who were initially hostile to the idea of cryptocurrency may go for it. I believe large number of individuals in the United States are about to get their stimulus cheques very soon. It will be having an immediate impact on the cryptocurrency market in the form of increased purchases of BTC.

That's a huge amount, if portion of that will go to BTC for investment, then that would move the market a bit. However, since that is a help from the government, I don't think most people would invest it, they'll spend it instead for their needs. For the economic stand point, the fiat will continue to inflate as they continue to print but then, we can't still expect that people will adopt in bitcoin as I believe the main reason why the market is bullish is because of the big players, they dominated the market.

Well... 3 January 2009 The Times: "Chancellor on brink of second bailout for banks" version 2.0 is here. ;)

With a stimulus bill this high, I have no doubt at least a few recipients of those checks are going to be buying bitcoin and probably overpriced GPU's to mine ETH with as well.  Nobody that I know of is starving in the states, so it isn't as though most people need that money just to eat.  There is going to be a lot of purchasing of nonessential goods and services and bitcoin is going to be just one of those things.

I can't say I'm ecstatic about the bill even though it would benefit me personally.  Handing out this much money is going to put the country further into debt and contribute to inflation directly by pumping more money into people's hands.  That's sure to drive up prices of everything.  Let's hope bitcoin is one of those things that gets inflated.  Nobody around here would mind that much I'm sure.

The inflation that you are anticipating will not take hold all of a sudden, if you look at the past recessions it is basically happening because of continued bad policies and we might go into recession in a few years and we are yet to know how these will impact the economy. The stimulus will have an impact in the market and if they do not check these things then it might go out of control and no one can save the country but they need to come up with policies that will balance them.

having this much funds thrown into circulation is just for temporals, it will greatly have a counter effect on the economy. and the impact it can have is for those who will see the future from now and hedge some funds in bitcoin as safe heaven, this will  cause some price increase when it has a combined effect.

To be fair, I thought the 2009 stimulus would be terrible for the economy and that actually managed to stimulate the economy and get people back to work. At least this time the money is going directly to the people who will spend it within the economy rather than the banks who just hodled it for profit.

The Nordic countries in Scandinavia have a lot of similar policies and they have some of the strongest economies in the world.

I don't think this will be as terrible as people think it is, particularly not if you're invested in crypto  :)

I believe that it is wrong to distribute money for free to the entire population of the country. For residents of the United States, $ 1000 will not give much benefit, and for the economy, $ 1.9 trillion is a very high cost indicator. This money could be directed to better goals, which would lead to any positive consequences.

I think Americans in general have a tendency to hate any policies that could be labelled as socialist such as this but like I said in the above post, if you look at the Scandinavian countries that follow the Nordic model of high taxes to subsidize world class social welfare programs, it's actually resulted in their citizens enjoying a fantastic standard of living...


Social Welfare spending as % of GDP:

Finland: 30.8%
Denmark: 27.8%
Sweden: 27.1%
Norway: 25.1%
UK: 21.5%
USA: 19.3%

https://en.wikipedia.org/wiki/List_of_countries_by_social_welfare_spending

Quality of life index:

Denmark: 1st
Finland: 3rd
Sweden: 10th
Norway: 11th
USA: 13th
UK: 18th

https://www.numbeo.com/quality-of-life/rankings_by_country.jsp


World happiness report:

Finland: 1st
Denmark: 2nd
Norway: 3rd
Sweden: 7th
UK: 15th
USA: 19th

https://en.wikipedia.org/wiki/World_Happiness_Report

GDP per capita:

Norway: 6th
USA: 10th
Sweden: 15th
Denmark: 19th
Finland: 24th
UK: 26th

https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita

Poverty:

Norway: 0.2%
Finland: 0.2%
Denmark: 0.5%
UK: 0.7%
Sweden: 1%
USA: 2%

https://en.wikipedia.org/wiki/List_of_countries_by_percentage_of_population_living_in_poverty

Income inequality:

Finland: 3.9
Denmark: 4.0
Norway: 4.1
Sweden: 4.6
UK: 5.4
USA: 9.4

https://en.wikipedia.org/wiki/List_of_countries_by_income_equality

Life expectancy:

Sweden: 82.7
Norway: 82.4
Finland: 81.7
UK: 81.2
Denmark: 80.8
USA: 78.9

https://en.wikipedia.org/wiki/List_of_countries_by_life_expectancy


World education rankings:

Finland: 3rd
Norway: 12th
USA: 17th
Sweden: 19th
Denmark: 24th
UK: 25th

https://www.theguardian.com/news/datablog/2010/dec/07/world-education-rankings-maths-science-reading


World ranking of countries by IQ:

Norway: 100
UK: 100
Finland: 99
Sweden: 99
Denmark: 98
USA: 98

https://iq-research.info/en/page/average-iq-by-country

Crime rate:

Finland: 22.75
Denmark: 24.72
Norway: 33.51
UK: 43.64
USA: 46.73
Sweden: 47.21

https://www.numbeo.com/crime/rankings_by_country.jsp


World Health organisation ranking of health systems:

Norway: 11th
UK: 18th
Sweden: 23rd
Finland: 31st
Denmark: 34th
USA: 37th (Privatised healthcare system)

https://en.wikipedia.org/wiki/World_Health_Organization_ranking_of_health_systems_in_2000


Unemployment rate:

USA: 3.5
UK: 3.8
Norway: 4.0
Denmark:  4.8
Sweden:  6.3
Finland: 7.2

https://en.wikipedia.org/wiki/List_of_countries_by_unemployment_rate


Homicide rate per 100,000:

Norway: 0.5
Sweden: 1.15
Denmark: 1.2
UK: 1.2
USA: 5.3

https://en.wikipedia.org/wiki/List_of_countries_by_intentional_homicide_rate

Incarceration rate per 100,000:

Finland: 51
Sweden: 59
Denmark: 63
Norway: 63
UK: 140
USA: 655

https://en.wikipedia.org/wiki/List_of_countries_by_incarceration_rate

Infant mortality rates per 1000:

Finland: 2.3
Norway: 2.6
Sweden: 2.9
UK: 4.3
Denmark: 4.4
United States: 6.5

https://en.wikipedia.org/wiki/List_of_countries_by_infant_mortality_rate

Right, but you can still manage to make some money investing on bitcoin.


But it's more volatile than bitcoin I would say, hard to say what the price will be in the future as investors might shift to bitcoin when they saw that it is on a super fast rally. Just look at the previous stimulus package and what it should be worth by today if you invested on bitcoin.

This is already happening, I remember seeing a graph that monitored how many purchases have been made with the same amount of dollars that was given as stimulus to the US population and as you may guess there was a tremendous spike every time the US government gave those stimulus check to their population, which means that bitcoin has been benefiting from those policies in a very direct way.

And not only that as governments keep printing money this benefits bitcoin over the long term as well as inflation begins to impact the country and the price of everything begins to go up and only hard assets like bitcoin keep up with the inflation causing even more people to come to this market to protect whatever wealth they have left.

Spending sound USD fiat money on unsound crashing bitcoin would be a bad idea for anyone getting a stimulus check. The best thing to do is put the check into a safe, insured, low yield savings account. Over the long term it will do better than bitcoin.

Most of them are broke, and they needed this money personally. Maybe for some they'll be able to think out of the box and invest, but

for most them, they'll going to keep the money as reserves and for paying bills.


Likewise, there are some that will bring their received  money into investment, and with Bitcoin's popularity it will one of those options for them.


If does, then it's not impossible to see the growth up to this level as flowing money coming from those who are hopeful to succeed

will help this industry to prosper.

Buy the rumour sell the news, when the law is actually passed and in effect is not when the market moves but in anticipation is when you must decide how this will influence price and asset quality under this change.   Its kinda universal rule that acting now would be after the fact really, the market can still be surprised or unaware of an outcome but most of the time any free market works always in anticipation of effects.

My take on 1.9tn is it makes the dollar weaker, most actions by government work to consume more then they produce where as people and private business is a producer and government is the tax on that productive capacity.  1.9tn represents something of a tax, the market likes weaker dollar as it provides cheaper currency at this time under easy monetary policy.  The overall effect on economies is negative as it detracts from capitalist enterprise in favor of cheaper money and centralised government spending, that influence makes the individual weaker though some might gain from its benefits obviously those not able to work for one reason or another.
   This is politics unfortunately many will disagree but DXY or dollar index generally gets weaker and the point Im making is this bill was on the cards for months hence dollar already fell; now it might rise possibly confusing as that is.