Over the past few weeks, Bitcoin bulls have shown tremendous strength to bring the price of BTC back to within, 50,0000. Meanwhile, members of the U.S. government have reopened a Pandora’s box in an effort to increase their debt ceiling: to create $ 1 trillion in currency and prevent it from defaulting on their national currency.
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As Peter St. Onge, Ph.D. And the Heritage Foundation’s economic research colleague explained in a post titled “Trillion Dollar Coins: Rocket Fuel for Bitcoin” that the measure has been postponed at a cost of 4 40 billion taken from the American public, but BTC and its holders have already benefited.
As Ong noted, the U.S. government has been raising its debt ceiling for decades. In fact, this is not the first time a government official has offered to create a 1 trillion currency and put it on the U.S. Treasury balance sheet to increase their debt limit.
In that sense, the researcher referred to the 1 trillion dollar currency as “a legal fraud.” The decision has been put on hold at the moment, but the US government may return to consider it if the economic situation worsens. So, that makes Bitcoin much stronger.
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The decision by the United States to issue 1 1 trillion in currency due to the status of the US dollar as a global reserve currency could have devastating consequences for the world economy. Ong said the following about the chaos that can cause:
(6) The end result of a trillion-dollar currency is radically higher money creation, a fundamentally higher exploitation of real wealth from the private sector, and a federal government that has finally made credit cards the maximum once and for all. The ultimate debt limit of the universe: bringing them to their final encounter with the bond market.
How Bitcoin Benefits From $ 1 Trillion Coins
The study claims that the সরকার 1 trillion currency creation talks are actually being considered by the U.S. government, which is already a bright reason for Bitcoin. The BTC was created as a result of the financial crisis and lack of trust in the central authority controlling the global money supply.
In that sense, Bitcoin acts as insurance, a way to opt-out from a system that seems to have a “pattern of destroying the world every decade”, which Wong said. Inflation, one of the main problems emerging from Covid-1, could be significantly worse if managed by other branches of the US government. The study states:
(6) If you think the central bank prefers to print money, wait to meet with Congress. And, in conclusion, if the price of Bitcoin prefers the Fed’s money printers, they wait until they see a treasury that pulls out trillions of dollars in scrips for sports.
In the end, Onj ruled out the possibility of a 1 trillion currency, but it was a sign of inflation and a lack of confidence in the government. So, this becomes another reason to keep Bitcoin.
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At the time of writing, BTC is trading at $ 54,976 with a 1.3% profit on the daily chart.