Fed has too much power over crypto and that was not suppose to happen

I've been thinking about this lately.

Crypto was supposed to be decentralized so it would not have a single entity controlling it. We would not be bond to the whims of a single centralized government or private entity.

And as of late i've seen crypto being controlled by the fed. They say they will print more crypto pumps, they say they will print less crypto dumps. This is the same as the stock market and it's a shame because it defeats the sole porpuse of decentralization.

If you think the fed will ever fight inflation think again

https://preview.redd.it/ypt6qrxr98b81.png?width=770&format=png&auto=webp&s=d53e7d664544a3fa7e501f82d9926a4902962655

1921- "In the 19th century, deflationary periods were the result of an increase in production, rather than a decrease in demand. During the Great Depression, deflation was the result of a collapsing financial sector and bank failures. "

Demand is higher and production is slower, there's news everywhere of cars unable to be sold because they lack chips.

This pandemic hit most supply chains everywhere, and that's until it's normalized there will be more demand for some products than actual production.

Maybe in a couple of years while normalizing the supply chain we will actually produce more than demand requires and it will be 1921 all over again….

1930 – "During the Great Depression, deflation was the result of a collapsing financial sector and bank failures. The deflation that took place at the outset of the Great Depression was the most dramatic that the U.S. has ever experienced. Prices dropped an average of ten percent every year between the years of 1930 and 1933. "

Prices drop 10% a year is something that won't stimulate the economy, ask yourself why would you buy a car worth 10k when next year it will be 9k or a house. People would spend much less because saving was making them money.

This is something the economy can't afford right now, many companies are barely surviving and the least they need is people to be willing to spend less money because they don't want to spend their savings which are increasing in value.

Crypto should be an edge against inflation which is rampant and most likely never tackled with, printing is done there's no way they will reverse course.

No matter what the fed says I doubt they will actually go for deflationary policy. They might print less.

Look at Obama's term he started with 2008 crash the housing crash!!!

8 years of Obama's term with good economy and yet the fed didn't increase rates. Only when Trump became president did they started increasing.

So if we take into account the same we still have 6 years left of Joe Biden with covid crisis, if he lives that long., with no rate hike.

Resume: Crypto will always be an edge against inflation which will never be tackled, No matter what the fed says crypto should do it's own thing.

I fear more rampant inflation and the hit on my savings than a crypto crash, because crypto proved to me it can recover, and my savings are still worth less and less.

submitted by /u/BlazingJava
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