Daily news1:If the US implements negative interest rates, Bitcoin and gold may benefit
The impact of traditional finance on bitcoin may be a good thing, because with the increasing voice of the United States about negative interest rates, the bitcoin bull market has recently been greatly boosted. In the past few weeks, although the SP 500 has risen by 35% and bitcoin and gold have seen similar increases, the global economic situation has shown a worsening trend. To counter these trends, in the past two months alone, the Fed ’s balance sheet has increased by more than $ 2.3 trillion, a 50% increase from the end of 2019 balance. But analysts say this is not enough.
Narayana Kocherlakota, an economist who previously served as governor of the Federal Reserve Bank of Minneapolis, recently issued a document outlining the reasons for the United States to lower interest rates to negative values. At the end of last year, former Fed Chairman Alan Greenspan said it was only a matter of time before negative interest rates spread to the United States. Gemini co-founder Tyler Winklevoss commented on Kocherlakota’s article on Twitter that this move is unprecedented and potentially dangerous. It is believed that Bitcoin will benefit from this trend. Because of negative interest rates, cash may soon require a high holding cost, and Bitcoin provides a 0% yield, and because of the halving mechanism, Bitcoin is a relatively deflationary currency. With the emergence of negative interest rates and increasingly strange monetary policies, fiat currencies will depreciate slowly (but faster and faster), which should be a benefit for scarce and decentralized currency forms such as gold or Bitcoin.
Also read:https://www.asicminerstore.com/news/china-blockchain-summary-daily-evening-news/
Daily news2:Founder of Pantera Capital: Digital assets such as Bitcoin, Ethereum and XRP will challenge the dominance of the US dollar
Dan Morehead, founder of Pantera Capital, said that in the long run, leading digital assets such as Bitcoin, Ethereum and XRP will challenge the dollar’s previous dominance. The current economic background may mark the beginning of the end of the dollar ’s dominance. “The only conclusion I can draw about cryptocurrencies is that within six to nine months, it will be very positive.”
That’s the today’s daily news.
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Post time: Apr-26-2020