For the first time since its creation, Bitcoin is now trading within an immense period of global economic instability. The Coronavirus pandemic has caused governments and central banks across the globe to take extreme actions in order to curb the damage done by a virtually frozen global economy. The over $8 trillion globally that has been deployed to combat the pandemic’s economic impacts has largely been the result of so-called “money printing,” leading mass inflation amongst fiat currencies to be imminent. Now, recent comments from the Federal Reserve chairman seem to have further vindicated Bitcoin’s immense value. Federal Reserve Chairman Claims Fed is “Not Out of Ammunition” During a recent interview with 60 Minutes, Federal Reserve Chairman Jerome Powell explained that the central bank has essentially been flooding the markets with money in order to thwart a full-blown recession. Amongst many other things, he also stated that the central bank “digitally prints” money as needed, adding that they are “not out of ammunition by a long shot.” These comments riled the crypto industry, leading many to claim that Bitcoin’s value as a deflationary and fully decentralized currency has been vindicated. Further compounding upon his claim of the Fed having unlimited ammunition, Powell also noted that there is “really no limit” as to just how far reaching their emergency lending capabilities are. He also added that they will continue supporting the markets once a long-term recovery begins. “The one thing I can absolutely guarantee is that the Federal Reserve will be doing everything we can to support the people we serve… And that means providing some relief and stability now. It means supporting the recovery when it comes.” Crypto Investors Cheer as Powell’s Comments Vindicate Bitcoin The interview riled the crypto community, leading many to claim that Bitcoin is an insurance policy against the results of the Fed’s invasive involvement within the economy. Travis Kling, the CIO at Ikigai Asset Management, spoke about this in a recent tweet, adding that Powell is “going to do all the leg work for us.” “Jay Powell is going to do all the leg work for us. Bitcoin is a non-sovereign, hardcapped supply, global, immutable, decentralized, digital store of value. It’s an insurance policy against this.” Jay Powell is going to do all the leg work for us.#Bitcoin is a non-sovereign, hardcapped supply, global, immutable, decentralized, digital store of value. It’s an insurance policy against this. pic.twitter.com/06yh6dcBw6 — Travis Kling (@Travis_Kling) May 18, 2020 Even outspoken Bitcoin critic Peter Schiff noted that Powell’s comments show that fiat currency is essentially worthless. “Jerome Powell just said there is no limit to what the Fed can do. Since all the Fed can actually do is “print” money, Powell believes there is no limit to how much money the Fed can print. That is only true if the Fed is willing to keep printing until the money is worthless!” Jerome Powell just said there is no limit to what the Fed can do. Since all the Fed can actually do is "print" money, Powell believes there is no limit to how much money the Fed can print. That is only true if the Fed is willing to keep printing until the money is worthless! — Peter Schiff (@PeterSchiff) May 17, 2020 As the Federal Reserve continues increasing its involvement within the market, it is highly likely that this will further catalyze Bitcoin’s growth and adoption. Featured image from Unplash.
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