Before the end of the year, Bitcoin could see a new high at $100.000 USD, or even above this value, and all thanks to the FED's monetary policies, which are currently driving its price in the markets.
The expert investor in Bitcoin (BTC) and co-founder of Morgan Creek Digital, Anthony Pompliano, pointed out that the excessive and uncontrolled printing of money by the United States Federal Reserve (FED), could drive the price of Bitcoin to unsuspected levels in the short and medium term. According to the expert, Bitcoin will reach the $100.000 USD, or even above this value in less time than expected, if the FED carries out its plans and continues printing money hand over fist.
The government of Joe Biden, current president of the United States, recently approved a new economic stimulus package, which will be aimed at reactivating the country's economy, helping unemployed families, but above all local and state governments. For this new stimulus package, the FED will create another 1,9 trillion dollars that will be injected into the American economy. Something extremely positive for the Bitcoin ecosystem, which a few days after hearing the news grew by more than $10.000 USD per unit, or approximately 20%, to once again place itself above the $56.000 USD.
In addition to these $1,9 trillion approved, it seems that the government and the FED plan to continue printing more money to continue covering the needs of the government and another 160 million American families. However, what is believed to be positive in curbing poverty, magnified by the coronavirus, will actually increase and accelerate it, harming families and the American economy.
For Pompliano, and for the entire crypto community that supports Bitcoin, every time the FED's money printers turn on, the Bitcoin ecosystem grows, because more users and investors join the cryptocurrency to escape the levels of inflation produced by the massive printing of fiat money, which will end up devaluing money and reducing the purchasing power of society, increasing poverty levels.
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Pompliano: Stimulus package will not reduce poverty
Injecting more debt into the US economy will only accelerate its impoverishment, Pompliano said on Twitter. Stimulus packages may be a temporary washcloth to soothe a pain, but they will not be enough to permanently alleviate it. Thus, the monetary policies being adopted by the United States will not help the economy in the long term. “The stimulus package will not reduce poverty. It will accelerate it”, says Pompliano.
On the other hand, the investment expert also points out that beyond an approach to helping society, the monetary policies of the government and the FED are aimed at “rescuing” the same government.
“Congress just passed a $1,9 trillion stimulus package that sends more money to state and local governments than to the people who actually need it. The government is bailing out the government.”
Pompliano's opinion is supported by several in the crypto community, who recognize a “self-rescue” in the government’s economic actions.
A call to recognize innovation
As Michael saylor, CEO of MicroStrategy, and Mike McGlone, analyst and commodity strategist at Bloomberg, Pompliano highlights that Bitcoin, the leading cryptocurrency in the markets, has outperformed gold and the S&P 500 every year for the last 10 years. Thus, Bitcoin is presented every day as the answer and solution to escape the ravages caused by the undisciplined economic policies of governments, which insist on saying that “controlled” money printing does not cause inflation. But shortly after turning on their printers, they reveal that the Consumer Price Index (CPI) grew.
“You can’t print trillions of dollars and expect asset prices not to skyrocket”, Pompliano said.
The investment expert advises those who want to protect their savings in the long term to educate themselves about the innovation offered by Bitcoin and cryptocurrencies, which have proven to be a very viable alternative to the Fed's money printing policy.
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