The USA "Printed" Another $168 Billion. That's Complete Bitcoin Market Cap!
The U.S. central bank Federal Reserve pumped $ 168 billion into markets on Tuesday alone. This is more money than the total value of all existing bitcoins combined.
The US central bank is doing everything it can to avert an economic crisis triggered by the coronavirus. For example, the key interest rate was lowered by 0.5 percentage points to a range of 1.0 to 1.25 percent last week.
Federal Reserve also printed $168 billion on Tuesday. That's more than the current Bitcoin market cap of $135 billion. Since central banks can create the money they lend out of nothing (fiat money), this is equivalent to printing banknotes.
But that still could not stop the crash on the stock market: At the beginning of February, it seemed to be a foregone conclusion that the US stock index Dow Jones would soon reach 30,000 points for the first time. But the Dow Jones is still in free fall today and is currently only trading at 24,000 points.
US President Donald Trump, who often sees the index as a barometer of his own success, said on Twitter on Tuesday that "pathetic, slow-moving Federal Reserve" should do much more to stimulate the economy.
Are cryptocurrencies ready for the fiat money collapse?
For ambitious Bitcoin fans who see cryptocurrency not just as a profitable investment, but as the actual currency of the future, such central bank measures could recognize the signs of a possible money revolution.
Even if central banks shouldn't print so much money that hyperinflation such as in Venezuela occurs, the falling key interest rate could push more and more people away from banks and towards cryptocurrencies.
However, Andreas Antonopoulos, a well-respected Bitcoin advocate and expert, warns of the consequences of an economic crisis: cryptocurrencies are not yet ready to offer billions of people an alternative to the previous financial system.
Investments in the tech sector would also likely be cut back, which would also harm the crypto industry as part of this sector. In addition, speculators could look for other investments that would be considered less risky.