Content
@
https://warpcast.com/~/channel/sense
0 reply
0 recast
0 reaction
Steve
@stevebeachy
Learning Crypto with /sense What is M2 money supply and how does it affect the price of bitcoin ? 🤔 M2 money supply is a key measure of the amount of money circulating in an economy. It includes cash, checking accounts, savings accounts, money market accounts. How Does M2 Affect Bitcoin? 1. More M2 = More Money to Spend or Invest When the government or central bank increases the M2 money supply (like printing money or lowering interest rates), people and businesses have more cash. With extra cash, some people look for investments, and one of those is Bitcoin. If M2 grows too fast, it can cause inflation meaning the prices of things go up because there's more money chasing the same amount of stuff. Some people buy Bitcoin to protect their money from inflation, since Bitcoin has a fixed supply and can’t be inflated like dollars. More people with more money investing in Bitcoin = higher demand. Higher demand and fixed supply = Bitcoin price goes up.
9 replies
3 recasts
14 reactions
Elrey
@elrey
Thank you Steve for letting us know this vital information in crypto.
1 reply
0 recast
1 reaction
Steve
@stevebeachy
It’s always a pleasure my friend ! I wish more people would take an interest like you do and educate themselves. 🙏
1 reply
0 recast
1 reaction
Elrey
@elrey
Exactly, there was a time I was learning through a platform, I finished all the free module but I couldn't afford the paid module hence I stopped. I want to know it enough to convince people around me that crypto is real.
1 reply
0 recast
1 reaction
Steve
@stevebeachy
There’s a lot of free information out there. I educated myself by doing a lot of reading and research.
1 reply
0 recast
1 reaction
