Salute to the Leo FInance Community!
Today i want to talk about an important issue to all the U.S citizens and all the citizens around the world.
Why U.S Politicians are so concerned about crypto?
Source: https://beincrypto.com/crypto-taxes-fund-biden-infrastructure-bill/
On the last days, a lot of news has come up about the special economic team that the U.S President Joe Biden has asigned, with the commitment to release a paper about the regulation of stablecoins.
If you want to read the White House Economic Group report about stablecoins and regulation in Congress, you can read it here:
Moreover, other politicians actors like the US Senate Banking Panel, the SEC Chariman Gary Gensler, the former U.S Secretary of State Hillary Clinton, Senator Elizabeth Warren, the U.S Secretary of Treasure Janet Yellen and the Fed Chairman, Jerome Powell has pronounced about their concerns about cryptocurrencies, stablecoins and DeFi ecosystems.
If you think i'm talking bullshit, you can read some news about this U.S politicians concerns about crypto here below:
Senate Banking Panel: https://finance.yahoo.com/news/senate-banking-panel-head-seeks-225311388.html
Yellen: https://www.coindesk.com/policy/2021/11/30/yellen-says-stablecoins-require-proper-regulations/
In the traditional financial markets, this news will significate a bear trending about crypto, but, the effect has been the opposite, the market stays really strong and the king of crypto's: Bitcoin. Stays above the range of 50k and the projection into the future indicates that BTC can easily reach 100k in the next year:
BTC/USD CHART:
This also happens because some another politicians, like the mayor of Florida and New York City are open minded about cryptocurrencies, and even they want to earn their salary in bitcoin.
U.S MAYORS OPEN TO BITCOIN
Source: https://cryptonews.com/news/bitcoin-turns-into-a-political-tool-as-us-mayors-compete-for-btc-salaries.htm
So the crypto market in general are no longer a taboo issue, because even with the concern of some politicians and the fears of regulation and taxes on crypto earnings, people around the U.S and around the world keeps adopting cryptocurrencies in their daily lives. And that's why the market keeps really strong even with these "bad" news coming from some politicians from Washington D.C.
Today, the US. Secretary of Treasure and the Fed Chariman Jerome Powell testified in a Senate Comitte, and the Senators keeps pushing and asking about the regulation of U.S government of stablecoins, DeFi ecosystems, cryptocurrencies and digital assets in general.
Source: https://www.bloomberg.com/news/live-blog/2021-11-29/powell-and-yellen-in-the-senate-kwkw102n
I think that this concerns are because the U.S Dollar Fiat Currency don't have enough power to control the inflation and even more with the HUUUUGE 28 TRILLION DOLLAR National Debt of the United States Government. To simpliy this i want to share with you two graphics, the inflationary growth and the chart of U.S government debt.
INFLATION CHART:
Source: https://tradingeconomics.com/united-states/inflation-cpi
US GOVERNMENT DEBT:
Source: https://usdebtclock.org/
Beside that, the U.S fiat currency on the last decade has lost their value against bitcoin, showing that the U.S Dollar Fiat Currency in the near future is going to be obsolete.
USD/BTC CHART:
Source: https://www.xe.com/currencycharts/?from=USD&to=XBT
On the last days, president Biden signed the 1 trillion dollar infrastructure bill, and the Federal Reserve keeps just printing U.S Dollar Fiat currency from nowhere.
So, what i think is that the U.S government are so concerned because they are thinking that the 3 TRILLION crypto market has just surpassed them, the whole propaganda about crypto and bitcoin are assets for criminal just doesn't work anymore.
This market are just breaking the traditional financial system around the world, and the only politician that are president and really understand this changes in the financial system is El Salvador President Nayib Bukele. He keeps buying the dip and their bitcoin reservers just keeps growing and growing.
If politicians just try to understand how this works, we can have a lot of opportunities beacuse the blockchain technologies offers the opportunity to redistribute the wealth to the citizens around the world. And reach a new level of life for the citizens of the most poor countries.
The traditional financial system has his days counted, is only a matter of time to watch how this can happen.