Yesterday, I discussed how mutiny at the Fed is releasing panic in markets. It’s no secret that a lot of the problems we’re grappling with could have been avoided if central bankers were better at their jobs.
But that’s simply wishful thinking on my part.
I think it’s unlikely the Fed will ever truly operate in the best interest of the economy. There are simply too many political factors at play for that.
The good news, however, is that there’s still some fight left in the yanks.
One congressman, Tom Emmer, has at least put forward a new bill to try and limit the Fed’s future power. Known as the ‘CBDC Anti-Surveillance State Act’, Emmer wants to prevent the Fed from being able to develop and enforce their own digital currency.
Or, as Emmer puts it himself:
‘Today, I introduced the CBDC Anti-Surveillance State Act to halt efforts of unelected bureaucrats in Washington, DC from stripping Americans of their right to financial privacy.’
Because as Emmer later clarifies:
‘Any digital version of the dollar must uphold our American values of privacy, individual sovereignty, and free market competitiveness. Anything less opens the door to the development of a dangerous surveillance tool.’
Blockchain integrity
Now, if you’ve been following Bitcoin [BTC] or crypto for a while, you’ll know this fight isn’t new.
CBDCs have been in development around the world for a while now. They’re the supposed answer to the volatile and unruly tokens and coins that make up the crypto market.
The problem, as we’ve stated before, is that a CBDC defeats the entire purpose of a digital currency.
Bitcoin and the blockchain were created to fight against the Fed’s idiocy and monetary tyranny. For them to try and appropriate and bastardise this technology is a slap in the face for the crypto community.
Not that central bankers would care about that…
As an investor though, you should absolutely care.
Whether you believe in crypto or not, none of us want to live in a world where central bankers potentially have direct control over your finances. And if anything, it further cements the argument for investing in crypto to combat it.
Initiatives like CBDCs prove that the need for decentralised money and markets is imperative.
Whether or not you believe in the crypto ethos is almost irrelevant. Simply committing a small portion of your portfolio to this alternative asset space could be the difference between submitting to financial tyranny or fighting it…
Why disruption can win
Now, I know this is all getting a little over the top. But I really can’t stress enough just how important these issues are.
They may seem trivial, but that is what’s so sinister about it.
Fortunately, I don’t think it will be enough to derail the crypto revolution. Because whether CBDCs flourish or not, real innovation almost always wins out.
As our resident crypto guru, Ryan Dinse, recently told his subscribers:
‘Firstly, changes to existing paradigms of thought are always resisted.
‘There are just too many entrenched interests with too much to lose — even in the supposedly unbiased world of science — when such a moment occurs.
‘There’s money at stake, of course, but also power, prestige, reputation, and authority too.
‘But the more important and second point is this…
‘Better models of reality eventually win out simply because they’re more useful.
‘They lead to futures that wouldn’t otherwise be possible.
‘There’s also the fact that in a competitive world, if you don’t take advantage of it, someone else will.
‘Anyway, here’s the point I’m trying to make…
‘Like the discovery of quantum physics, bitcoin doesn’t make sense to many at first. It’s too different from their perception of reality, even more so for those embedded in the financial scene.
‘And yet, now it exists, it can’t be put back in the box.’
This is the most important takeaway in this whole matter.
No matter what the Fed has done or will do, it is basically impossible to kill crypto. It would require the collapse of the entire internet as we know it, and if that were to happen, we’d likely have far bigger problems…
All that matters is whether you’re on board or not. Because even if you don’t totally believe in crypto, it doesn’t hurt to hold a little of it.
After all, if you can tolerate the volatility, a small investment in bitcoin or a cryptocurrency portfolio could be the best decision you have ever made. It all depends on just how desperate the established order becomes in trying to retain control over your money…
Regards,
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Ryan Clarkson-Ledward,
Editor, Money Morning
