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.
> It's pretty simple, all the Bitcoin 'manipulation' you see is simply buying/selling open market coins.
LOL. And every tether is backed by a US Dollar in a bank account, right? Nobody could possibly (say) fake buy pressure to put the prices up?
> The point is, Bitcoin will bounce back, the dollar will not.
What point? For what purpose will bitcoin "bounce back" that the dollar will not?
As the dollar is not an investment, but a means of exchange, it doesn't seem particularly important whether the dollar 'bounces back', because nobody is trying to sell you dollars to stick under the mattress as a get-rich-quick scheme.
Savings accounts are for short-term liquid ... savings. You only keep in those what you need in the forseeable.
None of these is "investing in dollars" though. You're not just holding dollars and hoping the value will go up, because literally nobody does that. By design. If you want money to grow you invest it in productive assets. Unless you're into cryptocurrency when you gamble it on group psychology and dickbutt jpegs like 3AC did.
There is plenty of other manipulation, like constructing ponzi schemes that require BTC/ETH to get into, or "stable coins" backed by other crypto, or selling "art" like NFTs.
These all sooner or later crash down, and bring the value of ETH and BTC down with them. Already billions of dollars have left the crypto space, and are unlikely to ever come back.
It of course isn't impossible that BTC will bounce back, but there is also no guarantee of it. Perhaps Gamestop will bounce back as well, or the Venezuelan Dollar.
I very much doubt that people who have bought BTC at $60k, or the people cashing out of USDT while they still can, will want (or be able to) bring their money back into this crazy ecosystem.
Especially so as the price of energy increases and global warming becomes ever more apparent, keeping many afraid of investing in such energy wasteful endeavors.
Most of the money minted and spent goes to dropping bombs on brown people and guarding Arab oil investments. And while the average American got a small check, giant companies got massive interest free loans. Again.