Bitcoin is immune to excessive money printing from the Federal Reserve, say blockchain analysts at Weiss Crypto Ratings, who this week denounced the Fed’s latest decision to buy junk corporate bonds with 7-to-1 leverage.
The rescue announced last month, you will see another $ 750 billion injected into the corporate credit market. The money will provide additional liquidity and credit for larger companies.
But Weiss analysts Bruce Ng and Juan Villaverde argued in a Send On July 1, this would not solve the bankrupt economy of the United States, which contracted due to the coronavirus pandemic.
“Buying the debt of large politically connected companies (that would be insolvent if not for endless bailouts) no create new jobs, “Weiss analysts said, adding:” Nor does it generate the billions in profits lost from pandemic closings. “
Such bailouts will be what propels people towards Bitcoin and other cryptocurrencies, analysts argued.
They continued: “This is why Bitcoin (and other crypto assets) will be the future of money. Central banks are now destroying the world’s major paper currencies, and no power on earth can stop them. “
How Bitcoin could stop future financial crises
The answer, according to Weiss, is that the Bitcoin community is in charge of its monetary policy, not just its miners, as many suppose.
Bitcoin Miners don’t set monetary policy. That depends on the ENTIRE community of people who use Bitcoin, ”the analysts wrote.
“This is why it is so difficult to change even the smallest detail of how Bitcoin works,” Weiss wrote, adding: “The overwhelming majority of users should agree. Or nothing happens.
For evidence, one need not look beyond the recent drama surrounding Bitcoin Cash (BCH) “Mining tax”or infrastructure financing plan (IFP), which would finance the development of the network by taxing miners.
Although many of the largest crypto mining companies agreed with the proposal, others disagreed. The resulting uproar, much of which took place on social media, led to the withdrawal of BCH monetary policy.
Weiss Crypto Ratings said that cryptocurrencies are now the only form of money that can accomplish such feats and subvert the current financial system.
“What if they did [the bailouts] once, surely they can do it again. That leaves cryptocurrencies as the only honest alternative to the morally bankrupt monetary system we have today, ”the post concluded.
