With less than three weeks to go until the presidential election, all eyes are on the United States and on the country’s economy.
Indeed, throughout this COVID-ridden year, the financial steps that the Federal Reserve has taken may have pumped some life into the economy in the short-term, the long term effects of quantitative easing (QE) and other stimulus efforts are yet unknown; some analysts believe that Bitcoin System could have saved America’s economy. For others, the outlook is not as optimistic.
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In the cryptosphere, it seems that the overall consensus may be that while QE could have disastrous consequences for the dollar over the long term, the stimulus efforts may have an inversely positive effect for Bitcoin and other cryptocurrencies.
But, is what’s good for Bitcoin also good for the world? That remains to be seen.
Recently, Finance Magnates spoke to Alex Mashinsky, chief executive and founder of Celsius, as well as Miko Matsumura, founder of Evercoin exchange and general partner at Gumi Ventures, about the possible consequences that the presidential election could have on the economy, and what continued Federal spending means for the future.
(And, of course, about Bitcoin.)
Finance Magnates · FMTV: Alex Mashinky (Celsius) + Miko Matsumura (Gumi Ventures, Evercoin)
This is an excerpt. To hear Finance Magnates’ full interview with Alex and Miko, visit us on Soundcloud or Youtube.
”The Trump Administration Is Definitely a Form of Centralization.”
The financial stress that COVID has put on the US economy and the world’s financial system has led to a wide variety of serious consequences, some more bizarre than others.
“The thing that’s so strange about what’s happening is that we’re seeing these layers of the historical economy,” Miko said. “One of the ways to look at the layers of the economy is through Abraham Maslow’s hierarchy of needs: you can see that there’s a primary layer, and then there are layers above that as you get further north.
“One of the things that’s so crazy about this point in human history is that decentralization is a response to authoritarianism,” in other words, extreme centralization of power, Miko said.
“The thing that’s so interesting,” though, “is the social readiness for something that is effectively ‘leaderless’.
“In times of uncertainty, people tend to look for authorities rather than looking for things that are fully-decentralized and open-source and run by a bunch of ‘ethereum hippies’ or whatever it might be – not to be pejorative, by the way; I consider myself to be an ethereum hippie,” he added.
Alex Mashinsky also said that “the Trump administration is definitely a form of centralization,” and that “I think in crypto, we are all fighting for decentralization.”
“Capitalism Is Not Alive and Well.”
Still, the election of either US presidential candidate into office seems to point to financial problems down the road. “Biden is not much better,” Alex said, “because Biden will bring new taxes and new healthcare policies and things like that, which is more spending on stuff that we just can’t afford.
“In theory, what we’re supposed to be doing is saving during the good times and spend during the bad times, but now, we’re spending during the good times, and spending even more during the bad times.”