{"id":117113,"date":"2017-11-27T11:25:22","date_gmt":"2017-11-27T16:25:22","guid":{"rendered":"http:\/\/countingpips.com\/?p=117113"},"modified":"2018-06-01T15:49:06","modified_gmt":"2018-06-01T15:49:06","slug":"the-us-dollar-bubble-continues-to-burst-as-bitcoin-reaches-new-record-highs","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/11\/the-us-dollar-bubble-continues-to-burst-as-bitcoin-reaches-new-record-highs\/","title":{"rendered":"The US dollar bubble continues to burst as bitcoin reaches new record highs"},"content":{"rendered":"
November 27, 2017<\/div>
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By Veselin Petkov, Alpari<\/strong><\/p>\n

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This morning, the price of bitcoin rose to 9,771 USD on the Hong Kong exchange Bitfinex. This marks a new all-time high for bitcoin and an increase in its price by a factor of more than 10 since the beginning of 2017.<\/p>\n

Many experts claim that this growth is the result of reduced hype surrounding the US dollar. They believe that this is more a case of the dollar depreciating than the price of bitcoin rising.<\/p>\n

Crypto-analysts claim that the US Federal Reserve has printed so much money in the last 10 \u2013 20 years that not even the regulator actually knows how much USD is in circulation around the globe.<\/p>\n

It\u2019s worth noting that the Fed stopped publishing data about the M3 money supply back in 2006:<\/p>\n

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Below is a historical chart of M3:<\/p>\n

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We can see from the chart that the M3 money supply in 2006 amounted to 10.3tn USD.<\/p>

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At the end of 2008, the Fed announced they had opted for a \u201cprinting press\u201d cure to the crisis as the first round of the regulator\u2019s asset-purchasing program got underway. No one knows the current value of the M3 money supply in the US. Some members of Congress are long-time critics of the Fed and blame the regulator for turning the dollar into a bubble with no real backing.<\/p>\n

I agree with this assessment. If you look at the Federal Reserve\u2019s economic projections over the last 5- 6 years, you\u2019ll find that they almost always miss the mark. It\u2019s important to understand that the Fed\u2019s main role is to regulate money supply (by forming monetary policy) to support economic growth (low unemployment and 2% annual inflation). The question is how can the money supply be efficiently controlled when the Fed itself doesn\u2019t know how much money is in circulation (as I\u2019ve stated above, this relates to the M3 money supply)? This is exactly why the Fed\u2019s economic forecasts have been off for the last 10 years as well as why they\u2019ve been unable to adequately conduct monetary policy. In other words, the Fed has become less efficient at its job and the supply of dollars has slipped form their control.<\/p>\n

Crypto-analysts claim that during the next US crisis, not only will global investors shift towards cryptocurrencies (i.e. the dollar will lose its status as a safe haven and become a high-risk, unreliable asset), but American citizens will also look to exchange their dollars for crypto, bringing about a total collapse of the US dollar.<\/p>\n

Crypto-analysts claim that with the collapse of the dollar, bitcoin will cost somewhere between 1 and 5 million USD. At the time of writing this review, bitcoin is trading at 9,712 USD with a market cap of 162.22bn USD.<\/p>\n

Source: “The US dollar bubble continues to burst as bitcoin reaches new record highs<\/a>“<\/div>\n<\/div>\n
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By Veselin Petkov, Alpari This morning, the price of bitcoin rose to 9,771 USD on the Hong Kong exchange Bitfinex. This marks a new all-time high for bitcoin and an increase in its price by a factor of more than 10 since the beginning of 2017. Many experts claim that this growth is the result […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-117113","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/117113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=117113"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/117113\/revisions"}],"predecessor-version":[{"id":117117,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/117113\/revisions\/117117"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=117113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=117113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=117113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}