The Federal Reserve, the US central bank, plans to print and inject $6 trillion, about 50 times the total value of the bitcoin network.
According to Bitcoinist, central banks around the world have re-turned their money-printing machines. The central wisdom of the central banks seems to be that the best way to combat the economic effects of Corona is to pour money into the intractable belly of the world economy.
After days of debate between the Democratic Party and the Republican Party of America, the first step was to inject $ 2 trillion. Senate Majority Leader Mitch McConnell said:
A two-way agreement on a support package that is unprecedented in history has been reached to combat the epidemic.
But that was only the beginning. The Federal Reserve is now looking to print another $ 6 trillion, and even that could go even further.
According to statistics provided by the National Review website, out of a total of $ 6 trillion, $ 4 trillion will be issued by the Federal Reserve in cash and another $2 trillion will be part of congressional legislation. That’s $ 6 trillion, equal to 30% of total US GDP.
No decisions were made about the devastating effects of rising dollar reserves. One has to wait and see how the world economy reacts to so much liquidity.
Jameson Lopp, a digital currency developer, and celebrity tweeted :
Prospect: The United States announces the creation of 50 Bitcoin worth dollars. Not 50 bitcoin unit, but 50 bitcoin network.
What does this tweet show? Beyond that bitcoin reserves are limited and no more than 21 million units of bitcoin can be produced, and its holders are not at risk of devaluation due to the over-production of bitcoin, this tweet shows how small the bitcoin network really is.
When the Federal Reserve can easily print anything from $ 6 trillion, then the $ 120 billion bitcoin market is just a drop of an ocean.
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