The call for increased adoption of cryptocurrency is seeing a lot more traction now than it used to. One of the reasons touted by Bitcoin and crypto enthusiasts is the fact that currency manipulation, as well as inflation, will be either completely eliminated or at least reduced to its barest minimum.
Now, these worries are bound to come to light again as it has just been revealed that the United States Federal Reserve in “just a couple of weeks”, has printed more money than Bitcoin’s whole market capitalization.
According to a tweet by Bitcoin maximalist Dennis Parker on Oct. 21 and accompanied by a graph image, the Federal Reserve pumped about $210 billion into the American economy as its balance shot from about $3.76 trillion in September to $3.97 trillion this month. By comparison, Bitcoin’s current market capitalization according to CoinMarketCap sits at $148.7 billion.
On Oct. 21, Cameron Winklevoss – one-half of the popular Winklevoss Twins, also took to his Twitter to announce that in over a decade, since the financial crisis the nation suffered in 2008, the Federal Reserve has tripled its balance sheet, printing a total of $2 trillion. As Cameron puts it, “2 trillion reasons why you should own Bitcoin.”
This calls for attention to be paid to the financial system in the U.S. and is bound to create more situations that could possibly benefit the cryptocurrency sector. Already, there are also calls, even within the government, asking the administration to seriously consider the possibility of tokenizing the dollar.
The officials who pointed this out, have stated that with the ongoing rise in the creation and adoption of several cryptocurrencies all over the world, it just might only be a matter of time before the dollar loses its dominance as the most preferred currency if it doesn’t fall in line.
Last month, reports have it that the Federal Reserve Bank of New York in a move called the ‘repurchase operation’, also gave several banks up to $75 billion. Reportedly, this is something that hasn’t been done since the last financial crisis. Therefore the state of the country’s financial system is worth considering if these moves were deemed necessary, just a few weeks apart.
Several financial experts have also predicted a recession sometime next year. These moves, coupled with the fear of recession, could probably cause an increase in Bitcoin or crypto adoption sometime soon.