- Trillions of USD of money printing has the potential to significantly devalue fiat currencies worldwide
Grayscale, which is the largest crypto asset manager in the world, has released a report titled ‘Quantitative Tightening‘ which describes how Bitcoin will be used as a hedge against Central Bank money printing and the devaluation of fiat currencies.
Amid the Coronavirus Pandemic and the associated economic crash, governments worldwide have collectively printed trillions of USD, in-fact probably more than 10 trillion USD in total, and this money printing is only continuing. Money printing on this scale certainly causes fiat currencies to lose value, since the the trillions of USD of printed money dilutes the value of all of the fiat currency in the world.
Bitcoin could end up being the ultimate safe haven and hedge against fiat inflation, since Bitcoin cannot be printed at will, and in-fact the amount of new Bitcoins being minted each day is going to be cut in half on May 12. This helps Bitcoin to hold its value, and therefore Bitcoins value will rise as the value of fiat currencies falls, especially as investors rush into Bitcoin as a safe haven.
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