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Bitcoin Could Rise By 165% To $2,000 in 2017 Driven by Trump's 'Spending Binge' and Dollar Rally (cnbc.com)
The price of Bitcoin could hit more than $2,000 in 2017 driven by expectations that U.S. President-elect Donald Trump may introduce economic stimulus policies, which could send inflation soaring and propel the dollar to record highs, a report from Saxo Bank claims. An anonymous reader shares a CNBC report: Bitcoin is currently trading around $754.51, according to CoinDesk data. A handle of over $2,000 would represent 165 percent appreciation. During his election campaign Trump has talked about an increase in fiscal spending. Saxo Bank's note said that this could increase the roughly $20 trillion of U.S. national debt and triple the current budget deficit from approximately $600 billion to $1.2-1.8 trillion, or some 6-10 percent of the country's current $18.6 trillion economy. As a result, the economy will grow and inflation will "sky rocket," forcing the U.S. Federal Reserve to hike interest rates at a faster pace and causing the U.S. dollar "to hit the moon." When inflation rises the Federal Reserve may raise interest rates to bring it under control. This causes the dollar to appreciate because it would be seen as an attractive currency for foreign investors.
You know, the headline looks identical to the thousands of "this investment will go through the roof!" spam I've been receiving for decades.
How is this any different?
-- Sometimes you have to turn the lights off in order to see.
his could increase the roughly $20 trillion of U.S. national debt and triple the current budget deficit...
or you could sober and realize that no matter how unqualified, despised, ignorant and inappropriate you think he is, a president is merely a figurehead for the party. as an example: George W Bush rubber stamped everything his party wanted and spent most of his days on vacation. He had no grand vision or goals. Barack Obamas party managed to pass the ACA, but once they lost control of the house and senate, Republicans shut down the government twice, reduced the US Credit rating, stonewalled the supreme court electoral process, and managed to obstruct nearly all legislative activity that didnt include prosecuting benghazi or affirming 'god' in the US Dollar.
The worst a trump presidency means for the US is another foreign war, market deregulation, and more class warfare from the 1%. main street will have the same pot-holes in 8 years that it has today.
Good people go to bed earlier.
Actually, Deflation is neither good or bad. Inflation is neither good nor bad. Excessive amounts of either are generally bad. What people want is a stable currency. Unstable currencies are bad. Especially Fiat Currencies.
BitCoin is deflationary currency by default. There is no way to inflate BitCoin, short of massive amounts of CPU time.
If we are trading one FIAT currency for another, one that is immune to Government interference is probably the better one.
Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
IMHO, this is nothing short of a slashvertisment for a Pump n Dump Scheme.
Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
Nobody - especially religious people brought Jesus into the equation.
... the balance of power will have been changed.
Remember the shovel ready jobs? Never happened. The monies went to cronies - whether it was Bank of America or the teacher's union. The monies did not go to infrastructure.
Trump and Republicans are going to capitalize on the Democrats foolish aversion to pipelines, fracking and drilling. (Yes it ought to be regulated and yes no eminent domain atrocities and yes monies need to be put into escrow for potential damages)
But the jobs; the hopes for even more jobs; the defunding of the Saudi religious nuts and the good will (in the US flyover states) may very well hurt the Democrats for quite a while. If labor joins the Republicans because the Democrats have deserted them then
If you're scared of your govt then you need to further restrict its powers
Vote 3rd Party in 2016 and beyond
Stop it with the debt crap! And stop comparing the spending of money against the GDP instead of our overall total value!
Let's say you own property worth $1,000,000, you have $200,000 in total debt, and you make $180,000 a year. Would you worry about spending an extra $20,000 this year?
Those numbers are the US economic numbers translated to personal terms.
The NET worth of the US was over $86 trillion at the end of last year. That's value minus debt folks. Get real.
With value like that, the government could spend nearly $5 trillion per year over taxes (enough for a $15K / year universal basic income for every American rich or poor) and only be creating about a 6% inflationary load against our overall worth. The resultant increase in consumer spending (people with less money spend a large portion of what they get instead of banking it) would be like attaching solid rocket boosters to the economy. With proper management, deflationary pressures could be created using the greater economies of scale to counteract the inflation. A win for all!
Stop the fear mongering!
Deflation is worse than inflation. Inflation devalues your savings, thus encouraging (forcing) you to go out there are do more work to earn more money (generate more productivity). Deflation increases the value of your savings, thus discouraging you from working - why bother doing something productive when the money you have stuffed under your mattress is increasing in value enough to pay for your living expenses?
Currencies are stable when the money supply expands at about the same rate as the productivity of the country's citizens (basically GDP - a combination of population growth and increased productivity due to technological advances). That causes prices to remain stable when measured in the currency. Ideally, a government with a fiat currency moderates their money supply to slightly exceed this productivity growth rate, which causes a slight amount of inflation (prices slowly climb). Yes it's true that when a government screws things up (e.g. Venezuela right now), it can cause massive problems. But like regular oil changes for your car, there's a huge incentive for all governments to maintain their own economy.
The whole reason we abandoned the gold standard is that it's really stupid to base your economy's health on the gamble that the amount of gold miners dug out of the ground each year would match the rate of growth of your country's GDP. Historically, the amount of gold mined each year did not keep pace with economic growth, resulting in deflation, which led to higher economic instability. If you look at the history of recessions in the U.S., in the 45 years since 1971 when we went off the gold standard, there have been 6 recessions, or 1 per 7.5 years. In the 45 years prior (1926-1971) there were 9 recessions, or 1 per 5 years. The 50 years before that (1875-1925) saw 13 recessions, or 1 per 3.8 years. And the 50 years before that (1825-1875) saw 13 recessions as well. The amount of economic contraction during recessions has also been smaller since we went off the gold standard.
Unfortunately, bitcoin perpetuates this stupidity. Its value is based on (1) the rate at which people are able to "mine" bitcoins by solving increasingly difficult math problems, and (2) its total supply is capped at about 21 million coins. The very fact that bitcoins are appreciating in value is evidence that it's a terrible choice of a currency. You want the prices of staple goods to remain relatively stable in a currency. Instead, bitcoins are so deflationary that early adopters are literally able to live off of bitcoins they've stuffed under the mattress, instead of actually doing any productive work. A currency which enables that behavior is fatal to an economy. I'm not saying all crypto-currencies are flawed, or that there's no benefit to taking a currency out of government control. Only that bitcoin is fatally flawed in that it accomplishes the latter in the worst possible way. The huge increase in the value of bitcoins since its inception is not an indicator of its strength, it's an indicator of its unsuitability as a currency. It proves that bitcoin is incapable of scaling properly with the number of people using it (productivity growth due to population increase). In that respect it's more like real estate - where people who were born earlier were able to buy up most of it cheaply, leaving the current generation unable to afford to buy a home.
When Trump talks about spending, it's a "binge".
But a Democrat president can spend like there's no tomorrow and it gets names like "stimulus spending" or "quantitative easing".
No double standard, certainly.
Haven't the Democrats told us since 2008 that the ONLY way out of a recession is to spend money the government doesn't have?
-Styopa
[quote]Deflation increases the value of your savings, thus discouraging you from working[/quote]
Really? So I just got a 'raise' at work from deflation, somehow that is demotivating? I am not going to bother with the rest of what you are saying.
Inflation is a hidden tax that is destructive to savings and the economy.
love is just extroverted narcissism