What is more dangerous Blockchain with Bitcoin or FED with its policy?

Bankruptcies of SVB and SGB in the background

Critics of Bitcoin and the crypto market have just lost a key argument that the crypto market is unstable and dangerous. If any of you still have illusions as to whether the banking system is a guarantee of security for our deposits, the events of last Friday should dispel these illusions. Last week there was an unprecedented situation, namely, investors saw that the FED is not credible.

Impact of FED policy on investors' feelings

Where did this conclusion come from? Below are some of the root causes of the collapse of SVB and SG banks and why Bitcoin with blockchain is proving to be a safe haven

What happened:

1) The Fed printed money like crazy knowing it would cause inflation

2) While printing billions of dollars, the FED simultaneously decided to cut interest rates to 0 - that was STUPID in my opinion

3) Fractional reserve system in force since 1868 - deprived banks of the obligation to secure deposits where currently it is 0%!

4) The fractional reserve system gave banks the opportunity to make risky investments in... clients' capital without any consequences.

5) Fractional reserves mean that when a bank fails, it's the depositors who lose - not the BANK😊

6) With unlimited capital and 0% interest rates, banks started a cheap lending campaign with a long repayment period. (And where is the analysis of negative scenarios or stress tests)

7) Banks also invested deposits in stocks that were on price hikes.

8) Stocks on the stock exchange were artificially inflated by ..... FED's QE policy, where the excess of cheap capital from the FED went to the speculative market.

9) When inflation started to spiral out of control, the Fed began to raise rates.

10) Raising interest rates caused 3 main effects leading to the collapse of SGB and SVB and they were:

a. Decrease in business profitability on long-term loan agreements - the FED led to a situation where banks had a negative return and loss on lending.

b. The outflow of banking speculative capital from the stock exchange, the decline in the price of shares of listed companies, and the collapse of the upward trend. (fx.Tesla - 60%)

c. Increase in the profitability of US Treasury Bonds - capital from shares migrated to bonds as a part of a safe crash protection strategy

In the root causes, we can also mention poor management of the bank's investment portfolio, but generally, the FED is the creator of the current situation and the simple scheme of this whole mess pushes us towards conspiracy theories "that it must have been part of the plan" because no one believes that people from the FED are such idiots.

And now for the summary account!

Since the SEC( https://www.sec.gov/) is attacking the crypto market and Bitcoin itself so strongly, regulators require 100% security for issued tokens and coins - why does no regulator require Banks to secure deposits at 100% only 0%? This clearly shows the bias of the system and points to the fact that the crypto market is discriminated against because it is "decentralized". This points to the fact that the banking system is literally behaving like a "mafia defending a sphere of influence"

There are in fact institutions like the Federal Reserve Board of Governors (FRB), the Office of the Comptroller of the Currency (OCC), the Consumer Financial Protection Bureau (CFPB) not to mention the Federal Deposit Insurance Corporation (FDIC) https://www.fdic.gov/ - why are all those institutions blind to obvious facts.

What's more, the current situation has clearly shown that the financial market managed by the FED is not trustworthy because the FED makes bad decisions. Going further the BANKING system IS more dangerous than a decentralized Blockchain. And don't be fooled I will explain :

There are TRILLIONS of dollars in the banking system and the FDIC is only protecting a fraction of that amount - so the FED calculates that someone or most investors are bound to lose anyway.

And what next? what options does the Fed have? – well, further raising interest rates will lead to a domino effect of bank failures. On the other hand, inflation remains high, which kills the USD. It seems that we have a stalemate or a very difficult situation because we can't raise rates anymore and we can't print anymore. Have we reached the end of the financial system as we know it? I guess there is something going on because governments have accelerated work on CBDC - link with the picture of the situation below.

Cryptocurrency Regulation Tracker :

Ask yourself if central banks develop the technology on which Bitcoin is currently based in order to issue their own "Bitcoin -CBDC" - then the conclusions suggest themselves. In this war of the worlds, the conventional financial system is going away and CBDC will replace it.

Therefore, I believe that Bitcoin has already won and will remain a solid treasury of value for years to come

And what should investors do: GOLD, SILVER, BITCOIN, REAL ESTATE - this seems to be a safe direction.

#bitcoin #blockchain #fed #bancrupcy #bank #fdic #bonds #deposits #stockexchange #crysis #crash #market #svb #svbcollapse #silvergate #sec