What's bad for Fiat is good for Bitcoin...
We may be on the verge of another rate cutting cycle by the FED...
If that is the case, it would likely be very good news for bitcoin.
Just last week the FED cut interest rates for the first time since bitcoin was created.
Keep in mind that they were quick to say this was not a new easing cycle, but instead a mid cycle adjustment.
Though, when have we ever been able to take what any government agency says at face value?!
Most likely this rate cut signals two very important things...
For one, it signals that we have moved from a monetary tightening cycle to a monetary easing cycle.
Which means lower interest rates and 'easier' money going forward.
Most of 2018 interest rates were rising which likely was further putting pressure on bitcoin prices.
Secondly, historically, when a rate cutting cycle has started a recession was shortly after...
Check it out:
(Source: https://twitter.com/blockandchain/status/1157536904138637314)
Whether or not a recession will be good for bitcoin is up for debate.
Bitcoin has never existed during a recession.
Historically gold has done well during a recession, so there is the thought that should we encounter another one, bitcoin should catch a bid as well.
However, we have also seen times where money leaves all risky assets during a recession in an extreme flight to safety.
In that environment, everything goes down, except the dollar.
It will be interesting to see how things unfold, but the backdrop is there for increasing bitcoin prices.
With the FED announcing a rate cut for the first time in a decade, a recession is likely coming within the next year or two.
Stay informed my friends.
-Doc
hey jr
whenever the 2 year and 10 year bonds invert we have had a recession on average withing 6 to 9 months and we already have an inverted yeild and to top it off we have never really come out of the recession since it was cured with counterfeit money printing
have a great day and be well bud its looking more and more like BTC will not hit under 9k as far as i can see
cheers
Yes the inverted yield curve happened a while back, well depending on which bonds you use. :) I believe it was March, or May?!
Though it's not perfect as we had one in 95 and 98 when the FED was cutting rates, and no recession.
true that
keep up the good posts man
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Thanks.
Cornel. Google deutsche bank news and their debt based investment in in US based CDS.
Layed off 20k employees. Biggest bank in europe.
We could be facing a huge crisis.
Posted using Partiko Android
Yes I saw that news. It is something to keep an eye on for sure. Though US banks are in much better health. It's nothing like 2007 currently.
In Europe, interest rates are pretty much negative, so the economy is totally fucked up... People actually have to pay to keep their money in banks, unless of course you co-own a bank which means you get slightly better rates. That might also be why a lot of banks have reduced opening hours and limited service. What is really disturbing is that Visa is soon going to discontinue the most common card type used by young adults. Other alternatives are about three times more expensive and not covered by basic service package offered by banks. One of the reasons is that the currently used card type always needs active connection to verify the buyer and remaining balance of the card, so it can't be used in smaller moving vehicles like buses or taxis, but can be used for example in cruise ships that have internet connection.
Sounds like the perfect recipe for cryptocurrency adoption. :)
It is... People just haven't found common cryptocurrency with low enough fees and fast enough transaction accept rate.
If only steem had a marketing/advertising campaign...
Steem is one damn good example of what happens when rocket scientists developer computer software... It basically works, but it is expensive and heavy as **ll and usually breaks after first use...
Oh goody...
At a minimum it will give investors an alternative for their money.
Posted using Partiko iOS
At a minimum. :)
Bitcoin can prove its superiority against the fiat currency as a store of value
Yep, I think so as well.