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34 Bitcoin Terms A to Z

Term 33 - Zero interest rates

Zero-interest rates mean the interest to borrow at is near zero. The Federal Reserve creates this to stimulate the economy and prevent recessions. This will normally cause inflation. The real rate is even higher as you borrow at 0% and inflation is 10% when you pay back the money say after a year the money you're paying back is only worth $900.

People will also not save as much because their money isn't earning any interest. It will tend to create stock market bubbles that can crash once interest rates start to rise.

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