16.2 C
Amsterdam
30 May 2024
PumpMoonshot
Image default
News

Analysts Urge Bitcoin, Gold & Silver Buy as Elon Musk Critiques FED’s Money Printing



Elon Musk has compared the Federal Reserve with a rule from a Monopoly game, stating that, just like the game bank, the FED can never go bankrupt, and it can always emit more money. This analogy has led to discussions on the subject of monetary policy, particularly with the forecasted resumption of quantitative easing (QE).

At the same time, analysts such as Michaël van de Poppe and Peter Schiff are recommending buying Bitcoin, gold, and silver, as they expect the upcoming economic crisis and increasing U. S. debt.

Elon Musk’s Monopoly Analogy and the FED

Elon Musk’s tweet likening the ability of the Federal Reserve to create money to the rules of the Monopoly game has initiated quite a discussion. According to the Monopoly rule, in case the bank runs out of cash, players can make use of slips of paper to continue transactions, thus creating a sense of limitless ability to generate money

This analogy points to the fears of the FED monetary policy, particularly against the backdrop of persisting economic problems. Critics claim that printing money without constraint can result in inflation and currency devaluation.

The Federal Reserve has employed quantitative easing (QE) in the past, in which it acquires securities to pump money into the economy, which some worry could produce outcomes similar to those suggested by the Monopoly rule.

Reacting to Musk’s tweet, financial analyst Michaël van de Poppe recommended that investors buy Bitcoin, silver, and gold, anticipating that QE will be resumed. Van de Poppe’s tweet stated: “Purchase #Bitcoin. Buy Gold. Buy Silver. They will start QE again in a few months. ”

Economist Weighs In on Bitcoin

Economist Peter Schiff, too, predicts an explosive rise in gold and silver prices and possibly become “the biggest precious metals bull market in history. ” A long-time advocate of gold, Schiff says that today’s charts and fundamentals favor a significant increase in gold and silver prices.

He, however, continues to be negative about Bitcoin, calling it “dead money” and mentioning the likelihood of negative side effects of outflows from Bitcoin ETFs.

Schiff’s alerts spill over to the U.S. Economy at large. He raises issues related to consumer confidence, inflation, and interest rates, claiming that the FED’s policies might become counterproductive, fostering additional economic instability. He forecasts that recessionary pressures might push the Fed to lower rates and start QE again, leading to inflation worsening.

Rising U.S. Debt and Investor Behavior

The levels of U.S. debt have been increasing, which is why investors have been moving towards Bitcoin and gold as hedges against inflation. A recent report indicated that the country’s fiscal path concerns have increased investments in these assets. The U.S. budget deficit reached $1.7 trillion in fiscal year 2023 and is projected to hit $2.6 trillion by 2034. The debt held by the public is on track to reach a record 106% of GDP by 2028.

Besides, the recent approval by the SEC of spot Bitcoin ETFs has increased demand for Bitcoin. After its launch, the price of Bitcoin moved over $73,000 due to new investment possibilities. The expectation of the halving event of Bitcoin, which usually precedes price surges, has added to the interest, with analysts predicting a surge above $100k.

Read Also: Dogecoin and Shiba Inu Await Breakout for Over 100% Rally

The post Analysts Urge Bitcoin, Gold & Silver Buy as Elon Musk Critiques FED’s Money Printing appeared first on CoinGape.



Related posts

XRP Forecast and Analysis XRP/USD December 21 — 25, 2020

PumpMoonshot

Bitcoin Cash Forecast and Analysis December 14 — 18, 2020

PumpMoonshot

Ex-Goldman Executive Predicts Crypto Hits $10,000,000,000,000 Valuation After Family Offices and Institutions Arrive

PumpMoonshot
Verified by MonsterInsights