Bitcoin (BTC) has received ironic support from the President of the United States (US), Donald Trump. Trump seemed to say that he supported the manipulation of the dollar. The Federal Reserve, for example, pumped $6 trillion into the market.
Trump made some nice comments again. Trump said: “The nice thing about our country is 6.2 trillion dollars, because it is 2.2 plus 4, it is 6.2 trillion dollars. We can easily handle that because of who we are, what we are.” Trump also said “It’s our money; we’re the ones, it’s our currency.”
Because of these statements, it seems Trump is supporting the Fed by injecting the huge amount into the US market.
This kind of injection of money into the U.S. market is a central starting point for Bitcoin as a financial solution. In fact, the Fed recently admitted that, in theory, they had infinite amounts of money and could always print. All in all, a great promotion for Bitcoin.
Responses to cash injection
The response to the injection of the 6.2 trillion American dollars is very varied. For example, Hodlonaut, the one who organised Lightning Torch transaction relay last year, felt that the unlimited money situation made it illogical for him to pay taxes.
Goldman Sachs’ former director, Caitlin Long, went a step further and described the monetary intervention as killing capitalism. In addition, Caitlin warned that the Fed’s balance sheet would more than double before the Corona crisis is over. In her opinion, therefore, it was not a good move in the long run. “It solves problems in the short term, but it’s not good for the long term,” she tweeted.
The amount of 6 trillion represents the entire gross domestic product of the United States in the year 1990, or about 70% of the world stock of gold at current prices.