Seeking Alpha
2022-09-28 21:18:39

Bitcoin: Don't Fight The Fed (And Win No Matter What)

SummaryThe Fed has choices, but all roads lead to Rome.No matter what the Fed does, I believe Bitcoin is set to thrive.A big crash could be coming our way, and Bitcoin will emerge as a much-needed lifeline.Thesis SummaryBitcoin (BTC-USD) is an ideal investment to hold, in my opinion, no matter what the Federal Reserve does. In this article, I talk about the different directions the Fed can take, what the outcome of this would be for the economy, and what would happen to the price and value of Bitcoin.Ultimately, no matter what the Fed does, I believe Bitcoin will thrive. Loose monetary policy will inflate assets, which is good for Bitcoin. On the other hand, further monetary tightening, while bad at first, would eventually lead to complete economic collapse, which would cause a run on the dollar, leaving Bitcoin as one of the few assets capable of storing value.The Current State of AffairsMonetary Policy has been used as an economic tool for 1000s of years. The economy was "stimulated" in Roman times by creating more coins out of less pure metals. During World War II, the Federal Reserve lent the Treasury a hand by capping interest rates, and before that, various attempts were made to promote growth by purposely devaluing the currency.Today, economists believe they have perfected the art of monetary policy, and indeed, it seems like the whole market hinges on the words of those in charge of the Fed.While the Federal Reserve ha...

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