I’m confused what the alternative is. If it’s valuable and people lose value somewhere in their life, they will exchange their valuable thing to make up for it.
Like stocks, don't confuse short term volatility with long term performance. The fed is expert at manipulating short term valuations, but their manipulations only hold for so long before they have to lower or raise rates again.
Cryptocurrency has explicitly and repeatedly been touted as un or anti-correlated to the wider financial ecosystem, fiat currencies and the stock market, and has been loudly, noisily and never-endingly sold as a great hedge against these things, absent any evidence.
The evidence is in now, and those theories are a bust.
There are many theories about everything. Sorry the ones you bought into didn’t work out. Most of us aren’t surprised that when the dollar is manipulated that other asset classes’ dollar values change as well.
I didn't buy into them, nor was I the slightest bit surprised. The point is that like most theories about cryptocurrency value that originate with cryptocurrency proponents, they have been shown to be wrong when exposed to the real world.
To turn it back on you - I'm not sure why you're upset that a central bank currency is being manipulated, that's entirely the point of such a system, to allow manipulation by steering committees to attempt to smooth out the bumps and judders in the economy and keep things on an even keel. It's a good thing!
I'm not upset either. The dollar is a stable because of manipulation though unfortunately over the long term it does lose value. The cost of stability. Crypto on the other hand I do expect to go up over the long term while being short term volatile. Let's check back in five years and see if that's the case.
The notion that the volatility of crypto currencies are due to the value of the dollar being manipulated (rather than the "value" of the crypto) is absurd. You can trivially compare the value of a dollar to a basket of currencies (e.g. the U.S. Dollar Index/Dixie), or a basket of goods (like the consumer price index), and it is fairly stable, and definitely not as wild as the gyrations of crypto prices.
Just as companies like Celsius offered a high interest rate on Bitcoin, and lots of people moved their money into Bitcoin; the government can do the same by changing interest rates which incentivize people to move their money to/from dollars.
Feels like all the crypto marketing has been saying you should get crypto to avoid government manipulation. And yet the government manipulation is just as effective.
The government can short term manipulate the dollar and as a result the dollar value of various assets. That's what causes the short term volatility. Long term though the value of assets resistant to manipulation will go up, while the value of the dollar will steadily go down as it always does.
It's pretty simple, all the Bitcoin 'manipulation' you see is simply buying/selling open market coins. Not selling massive quantities of newly minted coins. The government on the other and has minted and spent trillions of dollars in stimulus which has resulted in permanent inflation.
The point is, Bitcoin will bounce back, the dollar will not.
For years it has been claimed that cryptocurrency represented a great hedge against traditional assets and investments in the case of a downturn.
Like many other claims made about the utility of cryptocurrency, this too has been shown not to be the case.