The United States Is Printing More Money Now Than It Did in All of 2009. What Does It Mean for Bitcoin?

United States President Donald Trump says talks regarding another stimulus package for Americans struggling financially because of the coronavirus pandemic will have to wait until after the upcoming election in November. From a political standpoint, it’s a smart move by Trump as he can leverage the hope of future stimulus money and how it may impact the stock market in a positive direction to garner more votes. That being said, the United States has already printed off more money in 2020 than it did in all of 2009 when Barack Obama and his administration had no choice but to support Americans following the 2008 Global Economic Crisis. That’s not so good for the value of the American dollar, but could it be good for Bitcoin?

The U.S. Government Is Printing Off Money At An Alarming Rate

A recent report from investing firm Pantera Capital points out that America is printing out money on a scale the world has never seen before. Just since June, the federal government has printed out more money than it did in the first two full centuries of the country’s existence. The report goes on to state that the U.S. Budget deficit in the month of September alone will total a whopping $864 Billion. That’s more than all of the debt incurred by the country from 1776 to the end of 1979. It’s for that reason that the CEO of Pantera Capital Dan Morehead says it’s time to get into Bitcoin.

Infamous investor Peter Schiff agrees that the Federal Reserve Bank and its currency will continue to lose value and credibility as the money printing continues. He’s being vocal about that idea on Twitter.

Why Does This Mean for Bitcoin?

A few things need to happen before Bitcoin’s market share increases and the idea that it’s going to be the world’s future reserve currency truly gains steam. For one, cryptocurrency adoption needs to increase. But there’s another aspect to all of this that’s more important. Bitcoin’s price needs to decouple from price action in the stock market.

Judging by the way the federal government is approaching the pandemic, the election and the devaluation of the dollar, that could happen in the next few years. For now though, it would be tough to say that printing off more money will have an immediately positive impact on cryptocurrencies.

It doesn’t take much of a look back at history to see that when people panic, they pull value out of the crypto market. That’s what happened in March when coronavirus first began to spread.

If you’re in Bitcoin to win big and increase your net worth, stay in it for the long haul regardless of what’s happening now. That’s how Morehead, Schiff and all other well-known investors truly build their well.

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