Good prospects for Bitcoin: for a long time, the central banks have denied the quantitative easing (QE) that is already taking place or have downplayed it. It would be the last resort and is used only in an emergency and with care. During the Covid-19 pandemic, these statements quickly became yesterday’s news and the world’s major central banks launched money printing machines on an unprecedented scale. In the meantime, the next emergency plan and “last resort” are already in the starting blocks.
Bitcoin vs. Fiat – QE on the agenda
Central banks around the world are doing their utmost to boost the economy and quantitative easing is now the order of the day. Even before the corona crisis, interest rates were in the basement and, through the indirect purchase of government bonds, the financing costs for the state and companies were reduced. Quantitative easing or “quantitative easing” primarily means the purchase of securities and government bonds by central banks. This gives the large and commercial banks a direct financial injection, which they in turn pass on to the economy. QE also depresses long-term capital market interest rates. This enables companies and banks to obtain cheaper capital, which is usually lent or invested. In an emergency, the central bank would print more money to cover its oversized expenses, which is like a vicious cycle.