Weiss Ratings criticizes: Fed's monetary policy is morally bankrupt, Bitcoin is the only reliable choice

Analysts at Weiss Cryptocurrency Ratings have stated that the monetary policy of the Federal Reserve is absurd, ridiculous, and unfair, as it not only fails to create new job opportunities but also involves using large sums of money to purchase corporate bonds, benefiting closely connected large companies. The analysts further added that these factors will ultimately drive people towards other trustworthy alternatives, such as Bitcoin and other cryptocurrencies.

Ridiculous Currency Policy

In the relief plan announced last month, the Federal Reserve announced it would further inject $750 billion into the corporate credit market. This money is intended to provide additional liquidity and credit funding for large companies. However, analysts Bruce Ng and Juan Villaverde from Weiss Crypto Ratings pointed out in an article published last week that this will not fundamentally solve the economic recession caused by the COVID-19 pandemic, and referred to these series of actions taken by the Federal Reserve as "ridiculous and unfair currency policies":

"Buying large, politically connected corporate debt will not create new job opportunities or make up for the billions of dollars in lost income due to the pandemic lockdowns... If you are a large company with a group of lobbyists, you get all kinds of money, and the Fed will tell the public that they had to do it due to a liquidity crisis. This currency policy is not only absurd, but also very unfair."

The Weiss Ratings analysts further pointed out that the Federal Reserve will definitely implement such morally bankrupt currency policies again in the future, prompting people to turn to other trusted alternatives such as Bitcoin and other cryptocurrencies:

"This is why Bitcoin (and other crypto assets) will be the future of money. Central banks are now destroying the world's major currencies, and there is no force in the world that can stop them."

How Bitcoin Prevents Financial Crises

Under the gold standard monetary system of the past, all currencies had to be backed by physical gold. To some extent, this gave the currency controlled by the Federal Reserve a limit on issuance, however, politicians and financiers eventually abandoned the gold standard. The analysts from Weiss Ratings pointed out that some believe gold is the solution and returning to the gold standard would solve all problems, but the analysts stated:

"If they do it once, they will definitely do it a second time. This makes cryptocurrencies the only trusted choice in today's morally bankrupt monetary system."

In the Bitcoin system, no single entity can change the rules of Bitcoin or the so-called "currency policy." Even Bitcoin miners do not have the right to unilaterally change the currency policy, and all changes must rely on the consensus of the entire Bitcoin community. The analysts wrote in the article:

"This is why even minor system adjustments are difficult to implement, as they require the agreement of the vast majority of users. Otherwise, nothing will happen."

The Cancerous Global Economy

Many cryptocurrency advocates believe that measures such as unlimited quantitative easing, large-scale bond purchases, and low-interest rate policies will ultimately lead to the demise of the US dollar. In fact, even traditional financial giants like Morgan Stanley, JP Morgan, and Goldman Sachs have pointed out that the value of the US dollar may be nearing its peak, and predict that the price of gold will soar in 2021 as the US dollar depreciates due to the Federal Reserve's currency policy.

However, for the Federal Reserve, this may be a necessary evil. The current situation is like a global economy with cancer, and the Federal Reserve cannot stand idly by and let it perish, so it has to save it through surgery, chemotherapy, and radiation therapy. Although these treatments are powerful and may take several years to heal, if the Federal Reserve does not make every effort to save it, the Nasdaq index will not reach new highs, the financial markets will not recover from the bottom, and more people around the world may lose their jobs.

Do you think the Federal Reserve's decision is right or wrong?