Almost all crypto supporters unanimously agree that Satoshi Nakamoto created bitcoin to combat the financial system. While some believe that fiat currencies should be completely abolished due to their history, others claim that if money printing stops and a form of backing like the gold standard is introduced, there should be no issues for fiat and crypto to coexist.
It seems that however, money printing is by no way ready to stop and the Federal Reserve, just this month, printed more money than the entire bitcoin market cap.
— Dennis Parker⚡️[Jan/3?] (@Xentagz) October 21, 2019
In order to be specific, in less than 2 weeks, the freshly-revitalized quantitative easing (QE) strategy, has printed out more than the current bitcoin market cap which is just over $148 billion.
QE also known as “helicopter money”, was introduced by central banks as a solution to the 2008 financial crisis. Money is printed out of thin air in order to buy up government bonds and provide economic stimulus.
Money Printing never solved any issues before, but why stop now?
The Federal Reserve’s balance sheet quickly jumped from $3.77 trillion to $3.97 trillion with their projections calling for a balance sheet of worth $4.7 trillion by 2025.
This is precisely why more and more people have turned their interest into gold and crypto. These assets cannot, by any means, have their supply inflated. Money printing is also the reason why the most hardcore crypto supporters call out to completely abolish the fiat currency reliance.
Last week, the former Bank of England governor Mervyn King, stated that the world is very calmly sleepwalking into another financial crisis which would be even greater than 2008.
Now that bitcoin is 10 years old, it has lasted for 40% of the average lifespan of most fiat currencies.
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