Hoskinson says crypto is the way out.
Cardano founder Charles Hoskinson warned that tough times lay ahead, calling out the Fed for their poor decision-making in previous years that have led to the current macroeconomic conditions for which the people are paying the price; he said people could not trust central banks with monetary policy. Notably, according to Hoskinson, crypto is the way out.
“Cryptocurrencies are the way out of this madness. Central Banks can’t be trusted with monetary policy. They work for the political process and gave two generations of politicians a blank check that we now have to cover. It’s going to get worse before it gets better,” the Cardano founder tweeted.
Cryptocurrencies are the way out of this madness. Central Banks can’t be trusted with monetary policy. They work for the political process and gave two generations of politicians a blank check that we now have to cover. It’s going to get worse before it gets better
— Charles Hoskinson (@IOHK_Charles) August 26, 2022
Notably, Hoskinson’s tweets come in response to statements from Fed chair Jerome Powell during the annual policy speech at Jackson Hole, Wyoming. Powell revealed the Fed has no plans to make a U-turn in its hawkish stance, noting that it plans to raise rates till price stability is achieved. According to Powell, while its stance will cause some pain, he believes it is a better outcome than what lies ahead should inflation be allowed to rise unchecked.
As reported by The Crypto Basic, following Powell’s speech, the crypto markets plunged. Notably, over $70 billion was wiped off the crypto market cap.
It is worth noting that in the early days of crypto, enthusiasts often argued that cryptocurrencies like Bitcoin were resistant to the policy changes of central banks. However, that has not been the case recently, as Bitcoin has become increasingly sensitive to rate hikes from the Fed.
In response to this trend, Hoskinson says it is all “smoke and mirrors.” According to Hoskinson, it results from institutional money manipulating the market.
It’s smoke and mirrors. Institutional money has manipulated the crypto markets
— Charles Hoskinson (@IOHK_Charles) August 27, 2022
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