A response in favor of Bitcoin came on Twitter after Fed Federal Reserve chairman Jerome Powell was interviewed on Sunday May 17 on a television program from CBS that he admitted The central bank creates dollars from scratch at an unprecedented rate. The move responds to the many instruments the government is promoting to save the economy in the midst of the coronavirus pandemic.
During the interview, Scott Pelley, moderator of “60 Minutes” asked if it was correct to say that the Fed “flooded the system with money”. To which Powell replied: “Yes we did it. We print digitally. As a central bank, we have the opportunity to make money digitally. And we do this by buying treasury bills or bonds or other government-guaranteed securities, and that actually increases the money supply. We also print the real currency and distribute it through the Federal Reserve Bank. “
Pelley then asked his respondents to explain how the Fed’s impact on the corona virus is affecting its unprecedented action in 2008. Then Powell noticed this The things that are being done now are much larger. He also urged lawmakers to do more to “avoid long-term damage to the economy” and suggested that another three to six months of stimulus may be needed.
Powell also said that he did not believe that a “second Great Depression” was a likely outcome “at all”, citing the fact that the current crisis was caused by an external stressor, not a failure within the financial system, and that United States did a “very healthy” economy just two months ago. However, he warned that a full recovery may not be possible without an effective coronavirus vaccine..
As a measure to reduce the impact of the coronavirus on the economy US Congress The United States initially approved $ 3 trillion, but an additional $ 3 trillion was approved by House Democrats last Friday, even though these funds are paralyzed in the middle of a partisan debate.
According to CryptoCompare data, Bitcoin was trading around $ 9,637 shortly before this 60-minute episode aired Two hours later, towards the end of this episode, Bitcoin was trading at $ 9,925. At the time of writing this note, the first of the cryptocurrencies is trading at $ 9,645.
What gives hope to the Federal Reserve chairman during the coronavirus pandemic? https://t.co/6sGfXKwdon pic.twitter.com/ujZfqIG1r5
– 60 minutes (@ 60 minutes) May 17, 2020
The eyes are on Bitcoin
Bitcoin was certainly not even remotely in Powell’s mind when he released his statements about the CBS program. It is noteworthy, however, that there are more and more people around the world who understand the implicit message associated with the ads that come into play during these pandemic times, because central banks justify the pressure of money to save their respective economies. This underscores the scarcity of the economy on which the Bitcoin protocol is based.
While the Fed president officially declared that the United States prints more money than it needs, There was a response on Twitter that highlighted the benefits of Bitcoin due to its scarcity as a fundamental part of its economic system.
A user of the microblogging network wrote referring to Powell’s words: “The fact that I speak in public is revealing. You can no longer hide it. More and more people will look at how the monetary system works. I think some will end up buying Bitcoin.
Another user tweeted Ironically, in his view, the ramifications will remain after the economic measures adopted by the FED: “historic highs for unemployment, historic highs for panic purchases by the Fed, historic highs for an undeserved asset gap, and undeserved lows in national integrity. Worry or hope. What can go wrong? “
In late March, after the Fed announced the measures it would take to protect the economy from the effects of the pandemic, Bitcoin recovered 10% within an hour, according to CryptoNews. At that point, the price of the main cryptocurrency rose from $ 5,866 to $ 6,464. Regarding a possible economic recession, another publication consulted various specialists describing how the main cryptocurrency could respond to a global crisis scenario.