hafeez on Nostr: What’s has happened makes the fed look good and hurt btc. Here’s an explanation: ...

What’s has happened makes the fed look good and hurt btc. Here’s an explanation: Think it this way, someone trusts you with money, you invest in something solid (MBS} that is guaranteed to payback the full amount in 10 years. After one year the guy who gave you the money wants it back now. Because you don’t have it, you have to sell the MBS at current market price which is lower then par (the full amount in 10 years). Your rich uncle steps in because he can wait 10 years. No money was printed. If anything this made the case strong for why the fed is a good thing - on the other hand the btc ecosystem just lost a key ramp into the system. Fed comes out looking good, btc looses ramp. Net negative