- Bitcoin’s trading volume strike a $20 billion benchmark while ETH moved down to $18 billion.
- The economy seems to run with the pace of a turtle whereas government borrowing is rapid like the hare.
- The next possible solution is FED where money is printed and given to commercial banks from where it flows to the government balancing the overall economy.
The past 24 hours witnessed the superiority of Bitcoin’s trading volume over the entire market cap of Ethereum. Bitcoin’s trading volume strike a $20 billion benchmark while ETH moved down to $18 billion. Interestingly it was amidst the decline of BTC ‘s value from $8000 to $ 7500 marking a 5% drop.
However, there is no concrete reason to understand such a feature. The wind has turned topsy-turvy due to the sudden crypto decline and this has put a good magnitude of pressure on Bitcoin too.
On the other hand, other cryptocurrencies are meeting even a more severe fate. Recently ETH appeared to rise above BTC but it’s rapid supply reduction, in spite of adding points to it, pulled it further down more than bitcoins.
The free fall trap has not only caught the crypto world but all other assets like gold. The reason is still not figured out.
The economy seems to run with the pace of a turtle whereas government borrowing is rapid like the hare. The gap if continued to widen, the outcome is not likely to sustain a prosperous economy and according to the FED chair, the same can be catastrophic in the economical arena.
A wider view gives a glance of the government all across the globe consuming all the money leaving a minute amount for investment hence accounting for the downstream trap of all the assets.
Moving to America, such borrowing saw a huge escalation in the wake of
a massive tax cut for the rich sector, including the President, the overall growth is just lingering at 0.2%.
In the UK, the situation has accounted for the same due to dull election practices. A similar condition is witnessed by the German economy which is shrinking with an acceleration due to inflation. Inflation has also encountered the UK.
Some other places have witnessed revolts due to the attempts to raise funds by increasing fuel taxes. The main instigating factor is that the rich are not being beaten by the weapon called ‘tax’ whereas the complete burden is pressurized to be borne by the poor sector which is striking with a much higher tax than before.
The rich enjoy the power in any society across the globe so they do not allow the raise in taxes for them, on the other hand taxes raised for the poor are stopped when a rebellious environment approaches.
Ultimately this invites a massive borrowing by the government pulls all the money from the economy anthem the same money is spent on a largely wasteful and nonproductive industry with no interest. At times it fills the pockets of the corrupts.
The solution is more transparency and direct interaction between the government and the government with rich and poor sitting together discussing the matter and drawing out a relevant conclusion with mutual agreement. But it seems impossible to apply.
The next possible solution is FED where money is printed and given to commercial banks from where it flows to the government balancing the overall economy.
This post first appeared on Thecoinrepublic: Cryptocurrency, Bitcoin, Ethereum News, please read the originial post: here