Proponents of Bitcoin (BTC) are finding that almost all central banks in the world are cutting interest rates and the worldwide supply of fiat money is exploding.
Statistics compiled by Charlie Bilello, CEO of asset manager Compound Capital Advisors, show that in 2020, 84 of the world’s 118 central banks cut interest rates.
“Bitcoin cannot be printed!”
Mainly due to the corona virus, the institutes lowered rates by up to 1,700 basis points, with Argentina leading the way.
Israel changed 15 basis points less, while Ukraine, Pakistan, Barbados and the Eastern Caribbean followed Argentina at the top of the list.
The current interest rate of the Argentine central bank is 38%, making it the highest of all the central banks on the list.
The lower interest rates are designed to incentivize loans and spending and to go hand in hand with quantitative easing measures, which can exponentially increase the money supply of fiat currencies.
Countries such as Venezuela, Iran and Lebanon, where currency crises have become an inevitable feature of central bank policy, are missing from the rankings. Zimbabwe, known for its hyperinflation since 2000, is also missing.
“The world is made like Zimbabwe,” summarized the chain analyst MMCrypto.
“… #Bitcoin cannot be printed!”
Central bank rate cuts in 2020. Source: Charlie Bilello / Twitter
The infinite contradictions of the “Fiat standard”
As Cointelegraph reported, frenzied reactions to Covid-19 have left proponents of solid funds speechless worldwide.
In the United States, cheap money has accompanied an almost incomprehensible 10-year record of quarterly stock market growth. In addition, despite a sharp rise in unemployment, data show that poverty has decreased due to government donations.
This creates the conditions for a struggle between rich and poor central banks over the unchangeable, non-inflatable Bitcoin future.
This week, RT presenter Max Keizer presented his forecast for the coming years: The United States will compete with Iran and Venezuela over most of the bitcoin hash rate. This in turn will push BTC’s price up to $ 500,000.