The European central bank recently made a move which is believed by many to drastically accentuate bitcoin prices, this is through its newest monetary policies.
The move made by the European central bank by slashing its interest rate on deposits to -0.5% from a positive of 0.1% could only accentuate the value proposition of bitcoin. Not only the European central bank, but other leading central banks have also joined the league to take similar steps which may increase the need for bitcoin.
The European Central bank also revealed that it would start a fresh round of quantitative easing by pumping 20 million Euros into the Bond market and other assets (not yet disclosed, but sure financial) every month to boost the economy.
Bearing in mind that the US president, Donald Trump also made a call to the Federal Reserve for interest rates to be slashed to zero or less. A top-notch executive of the American monetary policy revealed the notion of achieving a negative interest rate in the U.S is no meantime.
Central Banks to Only Boost Bitcoin
The drastic move of the ECB also comes after China announced its plan of slashing interest rates is no meantime, however, this may not seem so fine with bitcoin enthusiasts who believe the policies seem irrational and could only lead to skyrocketing bitcoin prices.
A top bitcoin investor/analyst wrote that the ECB pumping 20 million Euros into bonds and other assets is going to increase money in the economy and it’s a perfect strategy for currency devaluation in the meanest time.
He likens the recent moves by the central banks as a currency devaluation race, in which scarce assets like bitcoin will come to light. He believes that the more irrational the move is, the more bitcoin will shine, this also has been corroborated by several analysts that the more money central banks pump out, the higher bitcoin prices will rise.