The financial agencies, particularly those in the United States, have been dedicating a significant amount of their resources and efforts to repressing the cryptocurrency industry rather than focusing on the banking sector. This is particularly concerning given that the banking industry is currently facing many issues and appears to be crumbling right in front of the very eyes of these agencies.
A Rising Trend
The crypto industry, with a market capitalization of just over $1 trillion, is significantly smaller in size compared to the traditional banking industry, which has a total value estimated at around $7 trillion. Despite the negative coverage and accusations of illegal activity regularly attributed to the crypto industry by mainstream media, there is a growing trend of investors turning to Bitcoin.
This trend keeps rising, particularly during this time when traditional banks are experiencing significant instability and collapse. Despite the remarks made by JP Morgan’s chief executive officer, Jamie Dimon, who once referred to Bitcoin as a “pet rock,” Bitcoin has continued to hold up well, even during periods of turmoil.
This raises an interesting question as to what exactly makes Bitcoin appealing. One potential explanation for the growing attraction towards Bitcoin as an investment and its price increase is that it exists outside of the traditional banking system, which is currently uncertain.
Also, it is not subjected to bail-ins and bail-outs like the traditional banking systems. Bitcoin operates on a decentralized network that is not subject to the whims of the government or regulatory agencies. Hence, it has become a potential haven for investments during this period.
While the recent approval of a Bitcoin Futures ETF by SEC Chairman Gensler has enabled institutional money to invest in the asset, it is still a relatively new development and may not have a significant impact on the long-term value of Bitcoin.
How The Fiat Currency System Works
It is a widespread observation that most people lack a comprehensive understanding of the banking system. The reason for this knowledge gap is that the education system in most countries does not cover the workings of the banking system in detail.
As a result, many people are unaware of the fundamental principles upon which the system operates. For instance, many people do not realize that the banking system relies on debt to function.
Banks create money by issuing loans, essentially debts that must be repaid with interest. This means the system is designed to create more and more debt to maintain its viability continually.
This is a huge contrast to how Bitcoin works. It is crucial for those seeking to protect their wealth with Bitcoin to educate themselves about it and the banking system. BTC is exchanging hands at $26,636, having gained 7% and 30.7% in the last 24 hours and seven days, respectively.
