Wharton finance professor warns feds about Bitcoin taking over due to the falling value of the dollar. He requested the feds to “bite” the bullet and do something to defend USD. In the last year, inflation has skyrocketed, and the value of the US dollar has fallen dramatically. Many authorities said that this is just temporary, but now it is clear it’s nothing like that. In reality, inflation is worse than what’s being shown on paper.
Wharton finance professor warns feds about Bitcoin
If the feds don’t do anything to protect the value of the dollar, then it is clear that Bitcoin will have a chance of taking over. Inflation is on the rise, and this makes it essential for the citizens to preserve the buying power of their money. If it doesn’t work for them with USD, they will flock to BTC. Therefore, feds need to become proactive in terms of taking adequate steps to defend the dollar.
The professor also said that it is expected that there will be a 25 basis point hike in March. But considering that the feds are already a lot behind on schedule, aggressively increasing the interest rates would be a better idea. He further added that he is disappointed that Jerome Powell didn’t look at history, which suggests that this isn’t the time to slow down.
He accepts that things won’t be easy, and the feds need to realize that they have been doing the wrong thing and ‘bite the bullet’ here. They can say all they want about Bitcoin and the dollar, but if actions don’t follow, Bitcoin could take over. The professor already believes and has said that Bitcoin has taken over Gold as an inflation hedge for Millenials.
Inflation is here to stay
The thing is that the feds are not taking decisions that are strong enough to affect the situation. In order to get back to the market where it was, increasing interest rates are necessary. But they are doing it so slowly that they will have to do it multiple times to reach the market expectation.
What are your thoughts as Wharton finance professor warns feds on Bitcoin taking over? And do you think that the feds will be able to take a solid step regarding this? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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