$1.9 trillion stimulus passes senate

[DeathAngel]

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

[bryant.coleman]

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.

[Poker Player]

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.

[Vishnu.Reang]

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).

[ven7net]

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/

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.

[Lucius]

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.

Brian Armstrong, chief executive officer of Coinbase, posted a chart that displayed the percentage of buys that are “exactly the same size as the $1,200 stimulus check” from the U.S. government.

According to a spokesperson from Binance U.S., they also witnessed increased $1,200 deposits this month.
“People do seem to have deposited exactly $1,200 into Binance U.S. in the past couple of days,” Binance adds.

[m2017]

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/

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.

[voyager23]

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

[wxa7115]

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/

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.

[Jaered]

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

[Becky666]

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.

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.

[Lucius]

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..

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...

[bryant.coleman]

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

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.

[stadus]

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.

[berkekaya]

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

[Pearls Before Swine]

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.

[ene1980]

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?

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.

[doctor877]

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.

[Bergkampsballs]

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 

[vaultman]

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.