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Bitcoin (BTC) has received a new round of criticism from Robin Brooks, chief economist at Bitcoin Institute of International Finance (IIF). He describes the decentralized currency as a “meaningless asset” whose value derives solely from the policies of the Federal Reserve (FED) or the American central bank.


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Criticism of Bitcoin
Brooks wrote November 24 in a News on X were critical of Bitcoin. He attributes Bitcoin price fluctuations to Fed policy rather than its actual value. He compares Bitcoin to Fed futures contracts, which allow traders to speculate on their predictions of future interest rate movements.
This shows that he believes the Bitcoin price is more responsive to general economic developments and political decisions than it actually has any intrinsic value.
The IIF is a global financial industry advocacy group established to promote collaboration and communication among members of the international financial community.
The value of Bitcoin, like many other assets, is influenced to some extent by the monetary policies of central banks. The Central Bank of the United States typically has the greatest influence on global financial markets. Throughout 2022 and the first half of 2023, the Fed aggressively raised interest rates to their highest levels since 2001, to the detriment of financial markets.
According to many, Bitcoin could enter a new bull market next year, fueled by the upcoming BTC halving, a possible Bitcoin exchange fund, and possibly interest rate cuts by the Fed. Brooks now argues that only an easing of monetary policy could trigger a new explosive uptrend.
Previous negative statements
The leading economist has often cast Bitcoin in a negative light. In addition to what he believes to be an extremely high correlation with the Fed’s interest rate policy, he also had the idea for Bitcoin in the past “store of value” or diversification instrument rejected. He previously described Bitcoin as a so-called “bubble asset”.
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