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RE: Is Steem in a Bubble?
Central banks don't have control over the monetary policy of cryptos, they can only manipulate the fiat side.
Central banks don't have control over the monetary policy of cryptos, they can only manipulate the fiat side.
Precisely my point, that's why cryptobubbles are not the same nor even close to the detriment of a derivatives bubble.
I'm just saying, the FED can technically buy up tons of bitcoin or ethereum and dump it crashing the market. They have the power to do so. But it wouldn't make sense for them to do that now. It would make more sense for them to wait until way more people are involved. That's why I don't think something like that would be a reality for a good decade or so.
So the risks we currently face are strictly free market and that's a beautiful thing because demand will prevail in the market. :)
The Fed does it probably when crypto space is $10 trillion or much later?
I don't think they want to put any money into cryptocurrency since they can't take back that money, it will be outside their control.
The regular banks might play with it, because they are just profit makers, but the central banks are just protecting their turf.
Ah. Ok
Keep in mind, the Federal Reserve doesn't care about profit. If anything, they like breaking the bank as long as the populace is thrown into debt with them.
Jeff Berwick did a great piece on just what I speak of.
No you don't understand, that is not how the banking system works.
They loan money to banks to play on the financial markets, then the banks default on the debt, that is when the market crashes. It's like pumping air in a baloon.
Overleveraging is one issue, which I saw the PBOC has taken care of at the chinese exchanges. The other one is just the loans and ponzi instruments that are built on top of one another, derivative house of cards.
Oh I'm well aware of the derivatives market and monetary manipulation. I'm just saying the Fed in an attempt to attack our way of escaping the central banking system could technically attack us but it wouldn't make sense for them to do so until the market is far greater.
Jeff Berwick has spoken on this several times and makes some great points.
True