President Trump Calling For Interest Rate Cuts Will Cause Bitcoin to Boom Per Investor Dan Tapiero
The U. S. President Donald Trump has recently talked about cutting interest rates on dollar bonds. He demanded that the Federal Reserve (Fed) should cut interest rates until they dropped to around zero or below.
This move, however, is not a good policy unless the government wants people to buy Bitcoin (BTC), Dan Tapiero, a financial advisor for DTAP Capital, has recently affirmed.
First President to call for negative interest rates. Medium term this is direct call for a debasement of the US dollar in an attempt to create excess growth into 2020 election. Federal Reserve "boneheads." Gold and Btc should benefit as alternative stores of value. https://t.co/gdT0RXkn1P
— Dan Tapiero (@DTAPCAP) September 11, 2019
According to him, the “debasement of the dollar” could actually make a lot of people simply decide to buy gold and Bitcoin instead of continuing to buy dollars, which would harm the geopolitical power of the U. S. and would boost the price of Bitcoin.
While the idea of the move is to drive the economy up, this would lead people to stop getting money from storing their cash in banks. With little incentive to do it, they would use their dollars to buy other kinds of assets. Bitcoin has been a very popular choice recently, so this is what
About Negative Interest Rates
Negative interest rates are far from uncommon. They are generally an indication of a weakening economy. Europe, for instance, has started to use them after the 2008 economic crisis. The European Central Bank (ECB) decided to cut down the rates in order to low inflation because the union had a huge crisis.
Tapiero is not so sure that the move is needed right now, though, so he believes that only cryptos and gold are actually going to be benefitted if the negative interest rates are actually imposed.