The ECB ally of Bitcoin?

The ECB ally of Bitcoin? - ECB Frankfurt

The growth registered by Bitcoin over the past few months, a resurgence of the discussion on the future destiny of the virtual uniform attributed to Satoshi Nakamoto has also had among its effects, which has involved many of the best known financial analysts. Among the opinions expressed in this regard during the past few hours, the one issued by Anthony Pompliano, known to be one of the co-founders of the capital management company Morgan Creek. Let's go see why.

The ECB's aggressive policies could be a propellant for BTC

According to Pompliano, le extremely aggressive policies that have been implemented by the European Central Bank driven for a short time by Mario Draghi, they will have the secondary result of encouraging many investors to look around for alternative and affordable assets.
As is known, in fact, the ECB seems willing to continue in the policy of the low interest rates, the same that in recent years has practically precipitated the yields of bank current accounts. A policy that forces those who do not want to see their savings deteriorate to also consider riskier assets, like cryptocurrencies. Bitcoin, the ideal tool for this type of investment, would benefit in particular.

Not just the ECB

It should also be stressed that it will not only be the ECB to adopt a policy aimed at cutting interest rates to historic lows today. In particular, it will imitate it Federal Reserve of the United States, now ready to reduce interest rates, while the Turkey has just fielded the biggest rate cut since 2002 to date. In addition also the Australian Central Bank has already put forward the hypothesis of adopting no less aggressive policies. All in the hope of reviving a global economy which is struggling to take off and which could be further curbed by the ongoing trade war between the United States on the one hand and China and the European Union on the other. Conditions that are laying the foundations for a new rally of cryptocurrencies, at least the most appreciated, starting right from Bitcoin.

The halving of Bitcoin rewards

The drop in interest rates will then mix with halving the rewards due to BTC miners, an event that occurs every four years or so and that usually results in the minting of fewer tokens. The drop in the amount of virtual coins in circulation should be followed by a increase in demand and, consequently, from one growth in prices. Enough to push Pompliano himself to venture into a forecast that today would seem science fiction: by 2021, according to him, BTC's price will break through the $ 100 threshold. A milestone that will be achieved not linearly, but between ups and downs which will culminate in the real explosion of the prices of the queen of cryptocurrencies. All that remains is to check whether his prediction is reliable or whether it should instead be ascribed to the category of dreams.