What are the scenarios for Bitcoin described by Trump?Colin Baseman
Donald Trump was eager to inform the country's citizens of possible changes awaiting Bitcoin as soon as the country's Federal Reserve System (FRS) releases funds over 6 trillion USD.
News from the business and Finance sphere keep concerning the entire planet. Most people also want to know how politicians react to certain changes in the field of Finance, including cryptocurrencies such as Bitcoin, and what measures can be taken to improve the situation created by the pandemic.
As it turned out, Donald Trump, the President of the United States of America, mentioned the leading token Bitcoin with great optimism, adding that he is not against all sorts of manipulations performed with the dollar.
On March 27, Donald Trump stated his desire to support the Federal reserve system of the country, fully approving the idea of issuing more than 6 trillion US dollars. The news was published on social networks, prompting an outbreak of comments from both professionals and ordinary users.
According to Trump, the American dollar is "their" currency, which allows the country itself to decide how to deal with "their" money and what manipulations to conduct with the US dollar. At the same time, the President neglected to clearly explain his position, his thoughts, and conclusions. His main criterion was the desire to support the Fed in an attempt to strengthen the impact of the dollar on the world economy.
Trump did not provide any further explanation of what exactly led him to this kind of conclusion and decision, but he readily supported the representatives of the Fed, who promised to radically change the situation as soon as possible and bring the country to a completely new level. Fed officials confirmed that the system can guarantee a" never-ending " flow of currency, despite the crisis caused by the coronavirus.
This kind of interference in the financial sphere will inevitably affect the basic principles on which the work of the crypto currency is based, as well as influence the regulations according to which transactions with Bitcoin are carried out.
How bad will the idea be? And will 6 trillion us dollars be a real support and help, as well as have a positive impact on the market? These are the questions that stir the minds of all those who work with cryptocurrency. Donald Trump's statement surprised everyone who is more or less familiar with the country's market.
Hodlonaut, who organized the event "Lightning Torch" in 2019, is assured that the unlimited flow of money defies any logical principles and is meaningless and even dangerous.
Consecutively, Katelyn Long, former Goldman Sachs executive, is confident that this kind of monetary manipulation will inevitably lead to the complete collapse of the capitalist system in the country. She also expressed fears that the Fed's financial condition will double long before the losses caused by the coronavirus reach $ 10 trillion. The idea is not as promising as it may seem to those who are poorly versed in the principles by which banks and the market work.
For comparison, 6 trillion USD can be equated to the entire gross domestic product of the United States in 1990, and this amount would be enough to purchase almost 70% of the world's gold reserves at the spot price.
At the moment, the question is whether the financiers will be able to convince Donald Trump in the low effectiveness of this kind of currency manipulation. Or else the population, seized by panic and agony caused by the number of people infected with coronavirus, will not be able to resist the temptation to do a rash action.
Interview with Gen2 on The Capital07 Oct, 2020 Colin Baseman
TOP 10 crypto world news for October 2, 202002 Oct, 2020 Annabella Cornelly
TOP 9 crypto world news for October 1, 202001 Oct, 2020 David Kemp
TOP 10 crypto world news for September 30, 202030 Sep, 2020 Judy Rubio
TOP 9 crypto world news for September 29, 202029 Sep, 2020 Endy Callahan
TOP 10 crypto world news for September 28, 202028 Sep, 2020 Colin Baseman