The Fed since mid-September has printed more money than Bitcoin’s capitalization

In October, the US Federal Reserve (Fed) printed more money than Bitcoin’s total market capitalization.

Balance sheet nearly reached 4 trillion USD

On October 21, Dennis Parke, a cryptocurrency expert, said on the personal social network, since mid-September, the Fed has brought in the economy more than $ 210 billion.

This is part of the agency’s “quantitative easing” (QE) strategy and has overwhelmed the total market capitalization of Bitcoin, currently at $ 148 billion.

The QE strategy refers to buying government bonds to stimulate the economy. According to Parker, the Fed’s balance sheet increased from 3.77 trillion USD last month to 3.97 trillion USD. Previously that figure was higher, the Fed set a plan to reach 4.7 trillion USD before 2025.

The world gradually entered the next financial crisis

For holders of assets that cannot increase the supply like gold or Bitcoin, printing more money often reduces their reliance on fiat money.

Mr. Parker urged investors to buy BTC at the present time, in the context of the banking system is weakening.

In a speech at the International Monetary Fund’s conference last week, former Bank of England governor Mervyn King said the world was gradually approaching an economic crisis, worse than in 2008. :

“By adhering to new monetary policies and pretending we are making the banking system safer, we are gradually approaching the economic crisis.”

The idea that government intervention in economic activity and the central bank leading to the collapse of the financial system is one of the central issues in The Bitcoin Standard’s “Bitcoin Standard”. Mr. Saifedean Ammous.

Published in March 2018, the book focuses on comparing Bitcoin to fiat currency and commodities like gold.

According to Cointelegraph, after 10 years of development, Bitcoin has survived over 40% of the average life cycle of a fiat currency.