In retrospect, one could hypothesize that the quantitative easing measures taken by the USA over the last several years has been quite successful, at least from a currency and valuation perspective. That said, will this program have the same effect on the Eurozone as the European Central Bank drops the hammer on their new program?
Set to commence Thursday, the new bond-buying program that was so successful in the United States, with over 300 Billion dollars exchanged in Bonds during their Bailout Process to help their nation achieve economic recovery seems to have given the money flow in the US a higher circulation, without the expected impacts of devaluation, which can result when government’s simply print money.
What does this have to do with Bitcoin?
Late in 2014, investors who wanted to mitigate risk in the buying of Bitcoin gained approval to establish hedge funds, Bitcoin bond funds, and other investment funds that used a Bitcoin-related investment focus. This helped commercial investors leverage their buying position against the market risks that the exchanges and markets were facing at the time. With the new round of quantitative easing, the purchase of shares in Bitcoin bonds and bitcoin hedge funds may receive a new boatload of attention under the new bond-buying scheme.
Think of it this way. If you are a bank and have a cash flow of 1billion dollars, but are able to invest in a series of long-term bonds that provide a guaranteed income, then the cash reserves can be freed to invest across other platforms such as Bitcoin, which has established itself as a benchmark commodity.
Will the price of BTC be impacted immediately?
It is tough to say what the price of BTC, Gold, or any other commodity are going to do in light of the new quantitative easing program in Europe, but it should have a positive impact on the price of BTC, at least from a mathematical standpoint. To learn more about markets and math, go to the Seventh Continent and start your own Bitcoin Business, produce goods, and trade them on the market for profits.