Bitcoin (BTC) Ironically gained support from U.S. President Donald Trump after he appeared to say he supported manipulation of the dollar after FED generated $ 6 trillion.
Trump defended the Federal Reserve’s printing of more than $6 trillion in a press conference quoted by various Twitter commentators including Blockstream CSO, Samson Mow.
Mow said in a tweet “How much did we pay Trump to advertise Bitcoin?”
Dollar is Our Money, Our Currency
Trump said in the conference “The beautiful thing about our country is $6.2 trillion — because it is 2.2 plus 4 — it’s $6.2 trillion, and we can handle that easily because of who we are, what we are,” he said.
“It’s our money; we are the ones, it’s our currency.”
While Trump did not provide any further explanation of his train of thinking, he appeared to endorse the Fed providing the US market with the astronomical sum of liquidity. The supply of the dollar would become heavily expanded in turn.
It’s this form of meddling in the money supply that forms Bitcoin’s central tenet as a financial solution. The epidemic of coronavirus emboldened its supporters, who watched on as the Fed admitted it had “infinite” money.
Meanwhile, reactions to the $6.2 trillion giant continue to appear, as different users of the cryptocurrency showed their surprise. Hodlonaut, the organizer of last year’s Lightning Torch transaction relay, argued there was no logical sense in paying taxes under an unlimited money situation.
Caitlin Long, the ex-Goldman Sachs executive who later pioneered Wyoming’s friendly Bitcoin regulatory approach, described the monetary intervention as killing capitalism.
She also warned that the balance sheet of the Fed would more than double before the coronavirus crisis diminished to over $10 trillion.
“In short-term, huge dollar demand bc short-covering, but it won’t last,” part of a tweet posted on Friday read.
On a scale, $6 trillion is the equivalent of the entire U.S. gross domestic product in 1990, or enough to buy nearly 70 per cent of the world’s spot-price gold supply.