Bitcoin keeps looking better and better each time the U.S. devalues its own currency.
The U.S. Federal Reserve’s game plan going forward includes short-term interest levels between 0% and 0.25%, as decided by Fed brass in a Sept. 15 and 16 gathering.
The independent body plans to maintain low interest rates in order to increase inflation, based on a Sept. 16 report from CNBC. Such news shines a light on Bitcoin as a store of value. The blockchain-based currency is largely immune to such actions, as it is protected against inflation by its permanent cap of 21 million coins.
A majority of the Fed’s committee members expect interest rates to remain close to 0% for the next three years, CNBC said. The governing body said that they aim for inflation higher than 2%.
These actions could result in the dollar losing value amid the central bank’s attempts to right the country’s sinking economic ship — tossed by the waves of the ongoing pandemic.
Over the last few years, Bitcoin has solidified its position as a store of value, theoretically removed from traditional market prices and government control. Mainstream giants, such as MicroStrategies and Paul Tudor Jones, have recently added to the coin’s credibility by joining the ecosystem, although the technology has yet to see full mainstream approval.