Bitcoin is about to become a hot asset as the US central bank goes ahead with its pseudo-quantitative easing program, believes a few bigwigs.<\/p>\n
Travis Kling, the chief investment officer at California-based Ikigai Asset Management<\/a>, called bitcoin “an insurance policy” against Jerome Powell’s decision to resume Treasury purchases. The Federal Reserve chairman on Tuesday confirmed that they would purchase short-term bonds to expand their balance sheets.<\/p>\n Fed’s move, according to Kling, signals a liquidity crunch in the US market, which means the central bank is injecting a fresh supply of dollar-denominated assets to stimulate the US economy. It is an equivalent of quantitative easing (QE).<\/p>\n “Welcome to QE4,” tweeted Kling.<\/p><\/blockquote>\n "I want to emphasize that growth of our balance sheet for reserve management purposes should in no way be confused with the large-scale asset purchase programs." Bitcoin is an insurance policy against monetary & fiscal policy irresponsibility.<\/p>\n Welcome to QE4.<\/p>\n — Travis Kling (@Travis_Kling) October 8, 2019<\/a><\/p><\/blockquote>\n\n
-Jay Powell, today<\/p>\n