The Fed is Injecting the Equivalent of 13 Million Bitcoin Everyday

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The Federal Reserve is increasing the liquidity injection in the markets. It has been more than a week since the Fed increased the repo operation offerings from $75 billion to $120 billion a day according to CNBC reports. If this amount is converted in bitcoin at the actual rates is 12,903,226 BTC.

But what is a Repurchase Agreement (Repo)?

According to the Investopedia definition:

“A repurchase agreement (repo) is a form of short-term borrowing for dealers in government securities. In the case of a repo, a dealer sells government securities to investors, usually on an overnight basis, and buys them back the following day at a slightly higher price. That small difference in price is the implicit overnight interest rate. Repos are typically used to raise short-term capital.”

Repos are a tool that central banks use to increase the liquidity for financial institutions to keep the money flow moving when this is needed.

However, all this increase in the money supply increases the buying power and a result the good prices go higher.

All this paper money created from thin air from the bankers should raise more concerns about Fiat money. What if the system is inflated to the point that the Fiat monetary scheme implodes and we are back to the gold standard as a central bank has hinted.

All these inflationary monetary policies that keep stealing money from the people pocket need a fix. Bitcoin fixes this and when you think that nearly the equivalent of the bitcoin market is injected daily in the markets, this puts things into perspective.

Even after 11 years, bitcoin is still at the beginning and people have not seen yet its true potential.

Read more at 7bitcoins.com: https://7bitcoins.com/the-fed-in-injecting-the-equivalent-of-13-million-bitcoin-everyday/

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