While Bitcoin destroyed the $ 12,000 level earlier today, many experts and analysts have searched for answers to find out why. The solution may not concern anything about cryptocurrency, but more about the new Federal Reserve (Fed) nominee, Marvin Goodfriend
Goodfriend was hailed both as a visionary and all time, according to the news source that reports. However, the potential new member of the Fed could have a positive impact on the Bitcoin market. His anti-cash views have been criticized as a form of monetary strangulation and government control over personal finances like nothing the US has seen so far.
That paper money keeps financial freedom in the hands of the individual – a scenario that he does not like in a crisis . During a crisis, the Fed typically lowers interest rates to increase the borrowing power of consumers and businesses.
The problem is that if the Fed wanted to lower interest rates simply remove paper money from their accounts to avoid losing money. This freedom to protect the value of money does not match well with Goodfriend, which posits that cash limits the power of the Fed to control the economy.
This kind of rigorous monetary policy may well be the cause of a recent peak in Bitcoin. If such strong government policies materialize, a decentralized digital currency presents a method of negotiation and interaction that is beyond the control of the Federal Reserve.
There is no doubt that other factors have contributed to the rise in prices. end up being a friend of Bitcoin, inadvertently.