Bitcoin is not an accountability mechanism on deficit spending. It actually helps governments increase deficit spending.
Bitcoin is a Liquidity sponge that soaks up all the excess liquidity looking ...
Long-term, bitcoin competes with public and privately issued bonds. So to that addressable market - yes - its purchasing power does act like a deterrent for deficit spending. Spend too much and bitcoin will be repriced in your currency.
Recently, the Fed has been selling its balance sheet ($3T over last 3-4 years). That action is a balance sheet reduction that effectively has offset previous deficit spending impacts. But that dynamic should be changing here pretty soon as they restart QE and bitcoin’s liquid/traded supply begins to shrink at these levels.
Recently, the Fed has been selling its balance sheet ($3T over last 3-4 years). That action is a balance sheet reduction that effectively has offset previous deficit spending impacts. But that dynamic should be changing here pretty soon as they restart QE and bitcoin’s liquid/traded supply begins to shrink at these levels.
❤️1