In response to the Corona crisis, the United States is currently facing, its central bank, the Federal Reserve has printed unprecedented amounts of money.
According to Dan Morehead, CEO of Pantera Capital, the amount of money printed in June, $864 billion equals the total amount of money printed in the period between 1776 and 1979. To provide image Morehead describes what was done with the money during that period.
“With that first trillion, we defeated British imperialists, bought Alaska and the Louisiana Purchase, defeated fascism, overcame the Great Depression, built the Interstate Highway System, went to the moon and some other stuff.”
One might argue that for the comparison to be justified, inflation should be taken into account. However, the point which Morehead wants to make here is that the fact that inflation is such an essential factor you should get out of fiat and into Bitcoin
Bitcoin critic Peter Schiff is also worried about the amount of money being printed and the effect it might have on the economy and fiat
money. He said on Twitter:
“The U.S. is about to experience one of the greatest inflationary periods in world history. Any credibility the Fed has left will be lost.”
Even though the public fears inflation
is too occur soon, in Australia, the opposite happened. During the month June prices went down with 1,9%.