Here's why the government printing more money might be a good thing for crypto.

Here's why the government printing more money might be a good thing for crypto.

By MadMaxx | Psycho Crypto | 22 Mar 2020


If you haven't heard already, the fed has injected 1.5 trillion dollars into the market in a bid to "fix" the dwindling stock prices and falling market.

Many analysts have said that this move would negatively impact the crypto market overtime. But I feel otherwise.

Here's why.

More money in the market means saturation: There was no need for new money to enter the market, and certainly not in that volume.

We didn't need any new defense gear. Neither did we need to up the development pace of any of the projects in the country. Everything was ok, until the pandemic struck, leaving a lot of economic and financial disaster in its wake, as people got scared and therefore irrational.

This influx of new money, with no corresponding requirement for it might be a bad thing in the eyes of the economists, but it might turn out to be a good thing for crypto in the end.

Whenever there is an excess supply of something, the excess needs to be gotten rid of. No better place to dump it into than the crypto market.

The crypto market is a very young market, and hasn't even reached 3 figures in the billion dollar market cap region. Pumping millions of dollars into the market due to a mistake by the government might be what the crypto market needed after all.

The fact that the money will be entering into the stock market means that it would(read: might) be distributed evenly among investors, when they either short, sell put options or take profits on open positions.

This money would naturally find its flow into the regular world, as most of the money that was removed from the crypto market was pumped into seemingly devalued stocks to get a "great deal".

Fear caused the crypto market's fall, and this incessant pump of money into the stock and options market might be what crypto really needs.

This is however my personal opinion. I did study Economics and Finance as an online course in my spare time, but I am no certified analyst or economist. Please don't take my word as law, or make any important decisions based off of it.

Thank you very much for reading, and thank you for 960 followers! Keep them coming!


MadMaxx
MadMaxx

Shitcoin flipper. Derivatives and options trader. Bitcoin and Ethereum futures and inverse swap contracts. Professional trader. Never financial advice.


Psycho Crypto
Psycho Crypto

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