How negative interest rates affect Bitcoin

[MonsterV]

As interest rates go lower and lower, investors will seek more returns elsewhere.
But there is a limit to that demand for more risk, as interest rates is a low risk investment. Probably ETFs of the biggest index funds are the more probable investment alternative.

thats right, when interest rates fall then investors will look for returns elsewhere, but whether these investors will invest in bitcoin. In fact not all investors will trust bitcoin, there are many of them who invest their money only in recognized investments. Because the average investor is part of another Warren Buffett.

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[TelolettOm]

As interest rates go lower and lower, investors will seek more returns elsewhere.
But there is a limit to that demand for more risk, as interest rates is a low risk investment. Probably ETFs of the biggest index funds are the more probable investment alternative.

thats right, when interest rates fall then investors will look for returns elsewhere, but whether these investors will invest in bitcoin. In fact not all investors will trust bitcoin, there are many of them who invest their money only in recognized investments. Because the average investor is part of another Warren Buffett.

This is just my personal opinion. actually those who have invested in bitcoin or other altcoins on average understand very well about investing and they already have at least other choices besides cryptocurrency as an investment option to be able to benefit. so the main choice is not in crypto. these are from some people I know and we share with each other about investments. so although there is an effect of a decrease in the actual interest they already have a way of each portion in putting an investment

[Polo7]

That's thanks to Trump who doing great job.
USA markets bullish now.


But rate did cut rates btc Price is Still very Low 10k for btc is low it should be at least 15k

[fulled]

I think its not gonna have big impact for bitcoin and cryptocurrency in general, it will have big impact for assets like metals and real estates

[juperos]

Negative interest rates do not lead to economic crisis situations, do not worry.
only when the US, China and other great powers have war problems, trade is stagnant, those things lead to economic crisis.
In the current situation, bitcoin will certainly not be affected and the future is very unpredictable.

[Polo7]

I Think There is impact for the Price.
Instutional investors Will Not invest funds that come from their own hard work.

They Will Get free money to invest into bitcoin Federal reserve Will create money from thin air.

[semobo]

The word negative interest doesn't looks familiar for me so I guess this is something not to be related with the crypto currencies yet.If this is about lending the bitcoins then there is not regulated or government approved organization will do this since it is impossible to calculate the value of the loan and what collateral they need to collect for issuing this loans.

[yoseph]

Negative interest rates are spreading all over the world, and it seems this trend is here to stay.

How do you think it will affect Bitcoin value in the long term ?

Will Bitcoin rise because negative interest rates are just another form of money printing ?

As long as all the negatives interest rates and talks are not about cryptos, there is really no need to worry at all, I have noticed a trend where people starts to doubt banks, they end up buying cryptos.This is a very common occurrence in my country since most banks are being shut down becuase of a so called financial sector cleanup by the central bank.

[Pab]

Negative rates are supporting bitcoin price increase because people who are  holding money in banks are receiving less interest
It doesn't count to keep money in fiat and watch how hidden inflation are eating them
If people have some knowledge about crypto then much better is invest money in to btc
It is only slogan  that inflation in for example Europe is low.Inflation is low on paper but cost of life are rising

[auntyjmary]

The world's economy has become highly unstable in recent years and it seems the negative interest rates can affect the price of any commodity. Hence It can possibly affect bitcoin in this modern times where every news can easily cause an upset in economics.

[RealMalatesta]

I didn't even know negative rate was even possible let alone to think that it would create an economical problem.

At one hand you have a country with negative rates so people HAVE to spend their money on something and earn more of it which would increase investments from rich and create a bigger economy for the country, but on the other hand if you try it as a not so first world country than you can have people buy foreign currency and keep that as an investment instead of investing into business or what which would take money out of your economy.

That is why I think in order to pull off a negative rate you have to be a great economy and need to make sure people won't leave you for another currency, Germany and USA may achieve that but you can't expect Venezuela or Zimbabwe to do something like this.

[Brunus]

The negative interest - which is absurd from a historical and economic point of view - is ultimately nothing but a tax on deposits, therefore an invitation not to hold firm capital.
But I don't see any particular effects on bitcoins: no matter how high the negative interests may be, they cannot stand comparison with the volatility of the crypto world.

[abhiseshakana]

Negative interest rates are interest rates in percentages below zero per year, which are applied by the central bank with the aim that commercial banks channel their funds to the public, rather than depositing money in the central bank alone. The purpose of the negative interest rate policy is to overcome deflation and low economic growth rates.

If there is deflation in a country, currency values usually strengthen, awareness of savings is high, and people are more frugal but this is bad for business because income from the business sector decreases, high unemployment, investment, stock prices, and tax rates decline.

What is the effect of negative interest on Bitcoin?
For investors and individuals who are literate in the benefits of the digital economy, surely they will see this as an opportunity to invest in bitcoin (digital assets). The tendency if stock prices plummeted in the price of gold and bitcoin will strengthen as when a trade war between China and the US occurred.

[teosanru]

Negative interest rates are spreading all over the world, and it seems this trend is here to stay.

How do you think it will affect Bitcoin value in the long term ?

Will Bitcoin rise because negative interest rates are just another form of money printing ?

The negative interest rate is not here to stay definitely. It's just a momentory scenario as the economy adjusts itself these negative interest rate will be gone. But yes for the time being things could change but I don't think BTC would get much of an advantage from this because people still think it of an Ponzi or get rich quick scheme for those who have spare money to throw away somewhere. Equity markets could get more investment and so could bullion but Cryptocurrencies ain't getting that. We need to convince the actual utility of Cryptocurrencies before we can actually expect them to enter this market.

[AniviaBtc]

Negative interest rates are spreading all over the world, and it seems this trend is here to stay.

How do you think it will affect Bitcoin value in the long term ?

Will Bitcoin rise because negative interest rates are just another form of money printing ?

Here in our country we experience a high inflation rate, and I’m glad that I used bitcoin to many transaction and investment. Negative interest rate is really the conflict in investing money in the bank. But due to negative interest rate, the demand in bitcoin will increase and also its price and value.

When the time comes that the inflation rate goes high, other investors will seize the opportunity to buy a lot of bitcoin because of the decrease in its demand.

[timerland]

I doubt negative interest rates will really affect BTC that much, more so the regular markets. I could definitely see negative impacts coming from this for investments like gold and sliver, but probably not such a new thing, there's nothing really to affect.

A lot of "correlation" we've seen over the past couple of years isn't all it seems, how BTC works is actually very, very unique, and I've only seen 1 clear-cut example of something affecting the price of BTC, which was when the media pumped BTC all the way up to 20k, pretty amazing stuff.

[alyssa85]

Negative interest rates are temporary for this reason: the banking system can't make a profit if the entire yield curve is negative.

Did you see what happened to Japanese bonds yesterday? Kuroda (the governor of the Bank of Japan) decided that the central bank would not buy any more government bonds with a term greater than 25 years (to reduce demand and thus increase yields). He is trying to steepen the yield curve. The 10 year Japanese bond auction went really badly and yields shot up along the curve and then this spread to Europe.

I think this is a harbinger to come: central banks are finally realising that they are causing more harm than good in buying bonds. If they abstain from buying, yields will go positive.

[SummerBliss]

Negative interest rates act as a simulator for banks to give their excess reserve as loans rather than keeping it with central bank of the country. The concept is more evident in developed countries like Japan and Switzerland. In developing countries like India, central banks pays interest upto 5-6% when it receives fund from commercial banks but in case of developed countries, commercial banks have to pay to central bank to keep their money.
Therefore, banks are more inclined to give money to general public than central bank.
I don't see any direct impact of this on Bitcoin but since negative rated instills economic growth, it may have indirect positive impact on investments like Bitcoin.

[betty11]

I don't think negative interest rate will have any negative impact on the bitcoin, since bitcoin is not dependent on such market model to strive. Bitcoin is on a different class. It should rather have a positive impact on the bitcoin, If because excess fund should be allowed to flow to bitcoin market.

[beerlover]

Eventually they should realize that central banks cause more harm than good whenever they do something. They think that when they print money to keep the people going they are doing something good but they are just allowing people to spend the money they don't have and then that money is printed so the money exists.

If central banks didn't then eventually a lot of worlds economy would collapse everything will be horrible we would be in economical dark ages but eventually whoever survives that will lead us into a world where banks are no longer greedy or can be greedy even if they wanted to because they would collapse and bankrupt if they do.

Just let banks bankrupt and jail the CEO's for letting it happen and you will not have any more scammers there, the power resides in the central banks to make that happen, only if they do not help the banks out. There are customers whose money get bankrupted as well? Customers who can provide proof of ownership will be reimburse by the central bank, that way banks will still go bankrupt, new money still would be printed and all the regular people would be saved.