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Author Topic: Fed Does Nothing: Gold and Bitcoin to Benefit?  (Read 968 times)
yayayo
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September 29, 2016, 01:51:09 PM
 #21

I don't think that the Fed's activity/inactivity regarding interest rates will have an immediate impact on Bitcoin prices - at least not a significant one. Although (sadly...) their number seems to be increasing, Bitcoin is still not populated by the same type of wallstreet speculator type investors as the stock markets. It is not as widely known as gold and consequently only relatively few people will have it on their mind as a potential hedge against the Fed's policy or - which seems to be more important for short term effects - expect that others will use it as such kind of hedge. Wink

Of course in the long term the Fed policy will have an impact on Bitcoin adoption. The key factor are not interest rates, but quantitative easing. By expanding the monetary base, the Fed will generate significant inflationary effects which will destroy trust in the fiat trash currency and stimulate the search for alternatives. When capital controls are enacted in addition, Bitcoin might even become more attractive than precious metals, because it can be moved around worldwide and can't be easily confiscated.

ya.ya.yo!

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