Buying bitcoin or any other crypto is a huge leap of faith and you don’t want to be the ‘greater fool’ | MCC.EXCHANGE
Nor should we forget the level of trust required to believe that the Federal Reserve won’t debase the U.S. dollar The dollar’s fundamental value has suffered over the past 15 years at the hands of the Fed’s multiple rounds of quantitative easing and efforts to keep interest rates low. In the process, the Fed’s balance sheet has ballooned from $800 billion in 2006 to more than $8 trillion.
Cryptocurrencies were supposed to be better than this. Bitcoin ethereum and other cryptos were born out of resistance to blind faith in corporate and monetary authorities, built instead on a foundation of anonymous and decentralized trust. How ironic that the crypto world has, in the process, developed in ways that require an even greater amount of blind faith.
An example of this need for faith is the enduring mystery over whether Tether coins are all their creators claim them to be. Tether coins are a particular type of cryptocurrency known as a stablecoin, which are designed to be redeemable at any time for U.S. $1 per coin. Tether says it backs the coins fully with reserves, which the company defines as currencies, cash equivalents and other assets, that cover every stablecoin it issues.
Yet there seems to be no shortage of investors with seemingly unlimited reserves of blind faith. Dogecoin originally created as a joke, now has a market cap of $32 billion. The market cap of Shiba Inu , another crypto coin, jumped to $14 billion after Tesla CEO Elon Musk tweeted a picture of his Shiba Inu dog.