What Is Quantitative Easing (QE)?

Quantitative Easing (QE) is a monetary strategy central banks use to stimulate the economy when standard methods fail, involving purchasing long-term securities to increase the money supply and lower interest rates. This boosts lending and investment. Comparatively, envision the economy as a bathtub: the central bank fills it, and the banking system drains it. With its finite supply, Bitcoin is seen by advocates as a 'digital gold,' a hedge against potential inflation and currency devaluation resulting from QE practices.