binance-banner.jpg

Bitcoin Paradigm Shift? Analysts Fear Inflation Behind the ‘BRRR’ of FIAT Printing


Bitcoin Paradigm Shift? Analysts Fear Inflation Behind the ‘BRRR’ of FIAT Printing

The U.S. Fed Chairman, Jerome Powell announces that it is preparing to buy unlimited amounts of U.S. bonds and mortgage-backed securities to prevent the economy from falling into depression. Hence, paving way for another $2 trillion worth economic stimuli.


However, the stock market shows little strength after the announcement. The S&P 500 Index closed 2.9% lower at $2237; it records a new low since December 2016 at $2191.

With the employment rates heading towards 30% mark and the world experiencing a lock-down due to the Coronavirus, the stimulus is backed by bleak prospects of revenue. Moreover, while the stimulus might seem necessary at the moment, it is also increasing hyper-inflationary risks.


Paradigm Shift


The current move by the US Feds is an illustration of the Modern Monetary Theory (MMT) which allows the countries like U.S., U.K., and Japan to print indefinite amounts of money without worrying about debt and inflation.


Alex Kruger, a crypto analyst who spoke on the issue notes that, it considerably increases the inflationary risk. He added, Read More...