In 2020, the United States Federal Reserve embarked on a massive dollar printing journey, necessitated by the need to deliver financial stimulus packages for the American taxpayers during the wave of the Covid-19 pandemic.
The U.S printed 35% of Dollar circulation in 2020Reports even had it that that years print represents 35% of dollar print in the history of the United States Federal Reserve.
Leaders of the two major parties believed that this was necessary since the COVID-19 pandemic led to an unprecedented economic recession. Due to this massive dollar print, the currency circulation moved from $15 trillion to over $19 trillion in 2020 alone.
Although the American government successfully gave stimulus funds to beloved citizens during a tough time like that, it is important to know that there would always be a price to pay for the massive dollar print.
Usually, in theory, when there is too much of any currency in circulation, it results in inflation. The case is not different from the United States of America after the record massive print led to a never-seen level of inflation in the country.
Bitcoin, Ethereum, benefits from Dollar inflationWhile this looks very unfortunate for the United States economy, it equally opened the door for digital currencies like Bitcoin and Ethereum which are being seen as an accessible and viable hedge against inflation.
According to a report, “The federal government may be making the ultimate case for bitcoin and decentralized currency, with other world governments also rushing to print as much inflating currency as possible.”
“With the dollar an ever-volatile indicator of wealth, the uncertainty surrounding cryptocurrency and precious metals may eventually pale in comparison.”
The fear of increasing inflation rates has played a massive role in crypto adoption from top institutions like Tesla, Meitu and others. Per a previous report from us, we revealed that Bitcoin in the last decade was deflationary while the value of the Dollar was inflating.