Let us analyze what the problem of money printing is. BTC (Bitcoin) is a hard-cap currency with a variable, and it is a predictable supply. Thus, it has benefited only from the rising debt of central banks.
On-chain monitoring resource CrytpoQuant’s data underscores the robustness of the supply velocity of Bitcoin. Thus, fewer and fewer coins are in circulation. This is because investors choose to save and not to spend.
Dan Held is a Kraken executive. Last month, he included the supply readings. It is because supply readings are one sure sign that Bitcoin was in the midst of a fresh price bull run. Also, global debt and inflation made a list.
Max Keiser argued that Rampant inflation of the dollar’s M2 money supply is only enriching the ‘cantillionaires.’ It is because the velocity of the dollar’s M2 money hit record lows. There are more United States dollars than ever was, but the rate at which they circulate across the economy has never been so slow.
That is according to the Federal Reserve’s statistics on August 31. According to statistics, the collapse in the velocity of the M2 money supply had come. And it is despite the fact of record printing of money.
The M2 supply topped $18 trillion in 2020. Meanwhile, velocity decreased below 1.125 for the first time since at least the 1940s.
The current year is the mark of a clear contrast to historical data of the United States dollar. So, there is sudden volatility in both metrics. Thus, it is worryingly clear to see.
As Cointelegraph reported, the record lows suggest that there is a tremendous amount of liquidity. It is barely touching the economy.
One of the reasons for that is its operations; the additional cash is remaining on the Federal Reserve’s balance sheet, meaning that those who see almost all its impact are the closest to the source of the money.
That is the problem of money printing.
- Trading Instrument