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Well, inflation is reporting in at 7-9% across the country and getting worse. So that is exactly what is happening and is kind of why the market is in decline

• AlexandrB 5y ago
  As I understand, the market is in decline because "The Fed" is trying to tamp down inflation by increasing the price of borrowing money. The fact that this kind of market correction is deemed an acceptable byproduct of countering inflation tells you how seriously the "fiat" economic system treats loss of purchasing power. AFAIK, Bitcoin does not have a mechanism for doing something like this to stabilize the currency.
  • deleted 5y ago
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  • nightski 5y ago
    Yeah, that kind of glosses over all of the action taking over the past 2 years which heavily contributed to the current situation. But even if we ignore that they have a problem on their hands - the two main goals of the fed are currently at fundamental odds with each other. They have been injecting money to achieve maximum employment which is at fundamental odds with price stability. If they raise rates to stabilize prices (which they are definitely doing, potentially more than anticipated), that is going to affect employment. So it's going to be a tough balancing act. There is also no guarantee that raising rates will have the effect they desire. It could stagnate the entire economy. There is a ton of uncertainty and that is really what is driving the craziness in the markets. Over 97% of my portfolio is in fiat and trust me this makes me very uneasy. The fact that Bitcoin does not have levers is the appeal to a lot of people.