Analysts believe that bitcoin could be the solution to the vicious cycle of constant economic crises. This follows the US FED’s sanctioning of a further $750 billion bailout of “junk bonds” lending companies.
Blockchain analysts at Weiss Crypto Ratings reported that cryptocurrencies are the only reasonable alternative to the morally bankrupt monetary system we have today. This is ‘because crypto assets like Bitcoin (BTC, Tech/Adoption Grade “A”) aren’t centrally controlled.’
Does Not Create New Jobs
The proclamation followed the announcement of a bailout last month. The Federal Reserve pump an extra $750 billion into the corporate credit market. The money is meant to provide additional liquidity and credit for larger companies. Analysts at Weiss Crypto doubt that this would fix the United States’ failing economy. The analysts stated:
“Buying the debt of big, politically-connected companies (that would be insolvent if not for endless bailouts) does not create new jobs […] nor does it generate the billions in earnings lost to pandemic lockdowns.”
Pumping More Freshly Printed Money
The United States is facing an economic crisis following an economic downturn as a result of Covid-19 related lockdowns. The nation is faced with chaos and riots as over 46 million Americans file for unemployment benefits. The Federal Reserve has responded by pumping more freshly printed money into gigantic mismanaged corporations.
Thousands of businesses have closed their doors, and there’s little hope some of them will ever recover. The FED believes that throwing all kinds of money at the big corporations is the way out of liquidity crisis. According to Weiss analysts, such bailouts will be the very thing that drives people toward Bitcoin and other cryptocurrencies. The analysts argued:
“This is why Bitcoin (and other crypto assets) are going to be the future of money. Central banks are now destroying the world’s major paper currencies—and no power on earth can stop them.”
History has evidence that buying the debt of “big, politically-connected companies” won’t help. The companies will be back with a begging bowl for endless bailouts will not create new jobs. The analysts believe that what this will do is create zombie companies and a permanent underclass.
Bitcoin Is Immune
The answer, Weiss says, is that the Bitcoin community is in charge of its monetary policy—not just its miners, as many assume. Bitcoin is immune to Federal Reserve’s excessive money printing. Weiss stated:
“Bitcoin miners don’t set monetary policy. That’s up to the ENTIRE community of people who use Bitcoin […] this is why it’s so damn hard to change even the tiniest detail of how Bitcoin operates […] the overwhelming majority of users must agree. Or nothing happens.”
The Weiss report said that cryptocurrencies now remain to be the only form of money that can achieve such feats and subvert the current financial system.
“And if they did it [the bailouts] once, they can surely do it again. That leaves cryptocurrencies as the only honest alternative to the morally bankrupt monetary system we have today.”