As the value of Bitcoin and other cryptocurrencies rapidly increased, a remarkable analysis was published in the British Financial Times. According to the analysis, the rise in cryptocurrencies is a sign of the foam created by the FED and the fall of the US and the dollar.
A remarkable analysis of the rise in the value of cryptocurrencies, especially Bitcoin, was published in the British Financial Times newspaper.
In the analysis signed by Rana Foroohar, “Cryptocurrencies have a place in a new world order where the leading role of the dollar is weakened”.
The article found a similarity between the sharp price movements in Bitcoin and the fluctuation in the price of gold, which was priced in marks in Germany in the 1920s, and it was argued that Bitcoin was more than a bubble “the last functioning fire alarm to warn us of the enormous geopolitical changes ahead”.
Defending that central banks have disrupted the discovery of prices in markets through low interest and monetary expansion in the last 10 years, Foroohar said, “You can see this as a correction of the business cycle or keeping businesses in the debt trap in a way that disrupts the functioning of the system, but the conclusion we have is that individual companies or one “It is very difficult to get an idea of the health of the real economy as a whole,” he said.
“SIGN OF THE FOAM MADE BY THE FED”
The author also stated that the increasing popularity of cryptocurrencies such as Bitcoin, whose price fluctuates sharply, can be seen as a speculative sign of the bubble created by the US Federal Reserve, and from another perspective it may be more revealing to consider this situation as “the first signal of a new world order in which the role of the US and the dollar will decline”. argued.
Stating that the world’s trust in the United States has decreased due to the toxic policies implemented during Donald Trump’s four-year presidency, and this period also reduced confidence in the stability of the dollar as a global reserve currency, the author emphasized that this feeling reached its peak during the Congressional raid on January 6, 2021.
Pointing out that Trump himself is a symptom of the economic problems that have existed in the US for a long time, these problems are overcome by low interest and monetary policies that keep asset prices high but encourage debt, Foroohar said, “The rise of Bitcoin, in some parts of the investor community, It reflects the belief that the US will eventually resemble Weimar Germany in some respects ”.
“CRYPTO CURRENCIES MAY HAVE ADVANTAGE IN A MULTIPOLAR WORLD”
The article said, “If the US government borrows so much, the dollar will begin to lose value and Bitcoin can become a safe haven.”
Arguing that China’s purchase of fewer US Treasuries and starting to develop its own digital currency is a sign of its desire to reduce its dependence on the US financial system, the world is moving from unipolarity to a tri-polarity of the US, Europe and China. He suggested that cryptocurrencies that can easily cross borders may have some advantages over fiat money minted by governments.
“It might be best to see the Bitcoin boom as a canary in the coal mine,” the article said.
Hello there! My name is Oktay from Tokensboss editors. I introduce myself as a business graduate and writer. I have been doing research on cryptocurrencies and new business lines for over 2 years.