But Weiss analysts, Bruce Ng and Juan Villaverde, argued in a Publish on July 1, this would not solve the failing US economy, which contracted due to the coronavirus pandemic.
“Buying debt from large politically connected companies (which would be insolvent if not for endless bailouts) do not create new jobs, “said Weiss analysts, adding:” Nor does it generate the billions of revenue lost due to pandemic closures. “
Such bailouts will be the very thing that drives people to Bitcoin and other cryptocurrencies, analysts said.
They continued, “This is why Bitcoin (and other cryptographic assets) will be the future of money. Central banks are destroying the world’s major paper currencies – and no power on earth can stop them. “
How Bitcoin could stop future financial crises
The answer, according to Weiss, is that the Bitcoin community is in charge of its monetary policy – not just its miners, as many assume.
“Bitcoin miners do not put Monetary Policy. It depends on the WHOLE community of people who use Bitcoin, ”analysts wrote.
“This is why it is so difficult to change even the smallest detail of how Bitcoin works,” wrote Weiss, adding: “The overwhelming majority of users must to agree. Or nothing happens. ”
For proof, just look at the recent drama surrounding Bitcoin Cash (BCH) “Tax on minors”, or infrastructure financing plan (IFP), which would finance the development of the network by taxing minors.
While most of the larger crypto miners agree with the proposal, others disagree. The resulting uproar, much of which occurred on social media, led to the withdrawal of monetary policy from the BCH.
Weiss Crypto Ratings said that cryptocurrencies are now the only form of money that can achieve such exploits and overturn the current financial system.
“And if they did [the bailouts] once, they can surely start again. This leaves cryptocurrencies as the only honest alternative to the morally bankrupt monetary system we have today, “concluded the message.