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Author Topic: What influence wil negative interests on fiat have on crypto?  (Read 363 times)
vincentvincent (OP)
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April 08, 2016, 05:49:26 AM
 #1

What influence wil negative interests on fiat have on crypto?

http://www.bloombergview.com/quicktake/negative-interest-rates
kiklo
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April 08, 2016, 06:19:24 AM
 #2

What influence will negative interests on fiat have on crypto?

http://www.bloombergview.com/quicktake/negative-interest-rates

Basically Any Commodity Physical or Virtual should skyrocket in Value, as it being a safe haven to preserve your Capital.
Physical Cash will be hoarded on a level not see before, as they keep passing laws slowly lowering the largest denomination available.

https://en.wikipedia.org/wiki/Large_denominations_of_United_States_currency
Quote
The base currency of the United States is the U.S. dollar. It is printed in bills in seven denominations: $1, $2, $5, $10, $20, $50, and $100. Previously there have also been five larger denominations: $500, $1,000, $5,000, and $10,000 were printed for general use (in large transactions), and a $100,000 bill for certain internal transactions.
Now the highest circulating bill is $100 , don't expect it to last too much longer.
http://www.wsj.com/articles/the-plot-to-kill-the-100-bill-1455667926

So Crypto will see a massive influx like something out of the Roaring 1920s once NIRP is in Full Effect

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bathrobehero
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April 08, 2016, 01:30:19 PM
 #3

I can't see negative interest rates having a positive effect long term. And it if becomes the norm banks will earn more profit than ever.

It's definitely good news for crypto though.

Not your keys, not your coins!
TPTB_need_war
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April 13, 2016, 12:47:58 PM
 #4

You should be asking what influence rising interest rates will have.

The real reason for the emergency Fed meetings...I strong suggest clicking to read the entire post:

[...]

Thus contrary to popular delusions/expectation, rising interest rates in the USA will kick off a booming stock market that would double or triple by 2018. But before that boom, there will be a bear market trap because most investors think only domestically and will be looking the domestic fundamentals as Mike Maloney is and thus get trapped in a bear market fakeout, which will V bottom and shit to a sling shot as the international capital stampedes into the USA as this rising interest rate scenario will devastate all the economies outside the USA for numerous reasons including the fact that there $10 trillion in corporate bonds abroad denominated in US dollars meaning those borrowers are short the dollar! Also the numerous dollar pegs, such as the Yuan, Hong Kong, etc are going to break for a similar reason, causing a cascade domino contagion effect.

This bear trap is why gold and crypto-currencies have not likely seen their lows yet and I am still expecting a selloff in gold to $850 or below and Bitcoin to below $150. The rising interest rates will break the 35 year Treasury Bond bubble and cause massive cash to seek a home in the stock market. But first it will cause a liquidity crisis bear market fakeout crash because of so many people caught on the wrong side of the trade and needing to sell other liquid assets to cover.

Mike Maloney is observing the correlation of the monetary base diverge from the Whilshire 5000 (USA stock market capitalization) because the international capital inflows are starting to offset the rising interest rates (the market actually sets rates, not the Fed).

The emergency meetings of the Fed is because they are losing control. The market is raising the rates and there is nothing they can do to stop this freight train.

[...]

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