Will quantitative easing (QE4) signals Bitcoin to moon?

[cheezcarls]

The global economy is in a bit of a quandary right now. Markers are on shaky performances, while Central Banks are doing every bit to keep their fiat economies trading above water. The United States’ solution to economic slowdown is quantitative easing, or purchasing securities from banks across the nation. The maneuver seems to be here, but what does this mean for Bitcoin (BTC)?

Quantitative easing isn’t a new trend. When interest rates begin to rise, the Fed has to pump more money into the economy through the purchase of treasuries. These give the banks more funds to lend at lower rates, and the process is not unique to the United States, either.

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It looks like that within the next decade (but not guaranteed), Bitcoin and other cryptocurrencies would dominate and take over in terms as "main mode of payment" than fiat. Central banks are doing anything in their power to make sure fiat stays above water and not gonna be drowned anytime soon.

If they do not take action, they would be left behind in the so-called "4th Industrial Revolution" where Bitcoin is likely going to "take over".

I have a question for you guys though. Since the feds might initiate QE4 (quantitative easing) anytime, will it help Bitcoin to "moon"? Let me know your reactions or opinions about this one. Thanks!

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[alyssa85]

The answer is "only if it results in inflation".

Traditionally once inflation gets going, people switch their money into a hedge for inflation: gold. Bitcoin acts like digital gold.

BTW - I wouldn't look for inflation in the US where it is fairly low, but in Germany, where inflation keeps coming in higher than expected, but the ECB has negative interest rates and QE because other economies in the eurozone are experiencing disinflation.

Germany is the stress point if they can be persuaded to take their money out of the bank and put it in cryptocurrency instead.

[kotik085]

4th industrial revolution, this can not be avoided, if bitcoin bypasses gold in terms of indicators, then you will see a huge jump in the price of bitcoin up. Soon this will happen and it is not known what will happen to fiat if bitcoin is on a par with it.

[CryptoBry]

When there will be a recession as a result of the many bad policies and actions of the government and its central bank or the Fed then for sure we can see a great appreciation of Bitcoin. Just like the time when Bitcoin was born, when economic and political upheavals are happening people and investors are looking for a good store of value and they would be congregating on gold and of course a focus can be thrown also on Bitcoin. However, if the government can successfully prevent any economic meltdown then we can see Bitcoin just stating as it is now.

[NeuroticFish]

will it help Bitcoin to "moon"

Imho nope, not this. If there will be inflation as said, Bitcoin will look like rising indeed, but not "to the moon". If there will be a market crash, again, people may rather sell their Bitcoin investments than buy.
Imho people need extra money to invest and there has to be another trigger - maybe in adoption / chain of shops / businesses / proper recognition as money in legislation - to get "to the moon" "and beyond".

Of course, we can get "to the moon" from bubble to bubble, but the periods in between will be painful and I hope that maybe it could be avoided.
For a bubble the trigger can come even easier and can be almost anything. But QE is not something to qualify even for that.

[adeandro]

The price has to rise gradually so as not to lose much, so I'm willing to wait, rather than hope for a sharp jump in the price.

[bitcoguru]

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[BrewMaster]

in a sense no. the "value" of bitcoin will not increase this way, but its "price" against fiat will.
think of it this way, when Venezuelan currency tanked the US dollar didn't gain value but the price of US dollar went up in Venezuela. that is the same with bitcoin versus other currencies like US dollar. when US dollar value tanks, the price of bitcoin will go up against US dollar but that doesn't mean bitcoin has gained value.

in another sense when bitcoin price rises it attracts a lot of attention and that has always led to increased adoption. with that increased demand the value will also go up.

in conclusion when the inflationary fiat currencies like USD lose their value slowly but surely, the deflationary currency called bitcoin gains value. or moons if you will.

[tbct_mt2]

It is not new. Everyone in crypto knows how terrible inflations are created by governments. The pandemic help people have more real examples in their nations with responses from governments and central banks. Tons of shit paper were used to print fiats and try to prevent economy won't be collapsed.

So what is now? It is not new and will the same news can be reflected to the market more? Or all of it were reflected to the market, to the rise of bitcoin? If the answer is option 1, bitcoin will rise more. If the answer is option 2, bitcoin won't rise more or if rise not much.