LIVEWhat will be the Effect on btc if Federal Reserve end
The Federal Reserve ending wouldn't necessarily mean the end of Bitcoin (#BTC ). Here's a breakdown of the potential effects:
Possible Decrease in Price:
The Federal Reserve raising interest rates has historically been linked to decreases in Bitcoin's price. This is because higher interest rates tend to make traditional investments like bonds more attractive, drawing capital away from riskier assets like #cryptocurrencies.
If the Federal Reserve ceased to exist, there likely wouldn't be interest rate hikes in the same way. However, some other entity might emerge to regulate the economy, and they could implement similar policies that could impact #bitcoin .
Increased Uncertainty:
The Federal Reserve plays a significant role in the stability of the US economy. Its disappearance would create a lot of uncertainty, which could negatively impact investor confidence in Bitcoin and other risky assets.
Potential for Long-Term Growth:
Some argue that Bitcoin was created as a hedge against traditional financial systems. If the Federal Reserve dissolved and traditional finance became less stable, Bitcoin could become more appealing as an alternative store of value.
Overall, the effect on Bitcoin is difficult to predict. It would depend on what replaced the Federal Reserve and how the global economy reacted.