The Federal Reserve Federal Funds Rate is basically the interest rate of the the world. Since Federal Reserve regularly during crises provides swap lines to other leading global central banks like the European Central Bank, Bank of Japan, Bank of England and the central bank of Switzerland, the Federal Reserve is in end effect the central bank of the world.
These EUR, JPY, GBP and CHF swap lines are nothing else then a promise by the Federal Reserve to give USD in exchange for EUR, JPY, GBP and CHF collateral for the amount negotiated.
All other risk assets like technology stocks, Bitcoin and other cryptocurrencies are priced off the Federal Reserve policy.
No, the Federal Reserve, in my opinion will not destroy cryptocurrencies with its current policy of aggressively raising rates. Bitcoin and cryptocurrencies will stay because they save people and corporations time, effort and money. Bitcoin and the underlying blockchain technology provide efficiencies and economies of scale which ultimately helps people live better and longer.
And since all corporations are trying to maximise profits, the lower costs of production Bitcoin, the underlying blockchain algorithm and other cryptocurrencies provide is a great thing to have.
Barring an outright ban of cryptocurrencies issued by major governments, cryptocurrencies will not only continue to exist, but thrive long into the future, as far as I am concerned.
In addition, many new cryptocurrencies issued by small technology startups could offer competition to Wall Street banks which ultimately guide to a significant extent capital flows. In short, cryptocurrencies could potentially disrupt investment banking, that is IPOs, equity capital raising, debt capital raising and Mergers and Acquisitions.
And since Bitcoin and cryptocurrencies, via the hashing algorithm underlying the blockchain actually produce information and share information, cryptocurrencies could disrupt Wall Street's research departments.
In short, cryptocurrencies provide too much benefits to just go dark. And in the future, they will provide cash flows via dividends.
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