The Federal Reserve has been seen showing its stance against the instability of bitcoin and proving that the US dollar is better by all means
On 7th May, the crypto community experienced a weird instance that came as entertaining for them along with a bit of strangeness when the St. Louis Federal Reserves published a post showcasing the fluctuation that eggs’ cost in bitcoin (BTC) has seen while comparing to the US dollar over the last 14 months. Recently on 6th June, the research wing of the Federal Reserve came up with something similar that received a suitable response this time.
The title of a recent blog post stated to buy eggs with bitcoins while looking at currency related to the volatility of the price. The blog post from the Fed initially consisted of a graph that showed the past price of eggs in terms of US dollars every month throughout the time since January 2021. It noted that the price of eggs during the whole time of 14 months fluctuated from $1.47 to $2.52
Further, it was also followed by a graph showing the behavior of bitcoin during a similar time frame that noted the price of eggs in bitcoin has fluctuated much more than how it did for the US dollar. However, nowhere in the report was mentioned whether the eggs price had increased during the time or the value of the dollar had dropped, or both have caused the trend.
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Further, it also noted the transaction fees in bitcoin could fall between $2 to $50. It stated that if anyone were to purchase the eggs with bitcoin, he would have bought much more eggs.
However, the crypto community reacted to the blog post and was outspoken on Twitter about it. Many of them were arguing that the Federal Reserve is by choice, cherry-picking this period when crypto is down-trending in order to push their narrative to prove the instability of bitcoin. People surrounded the Fed for overlooking the massive devaluation that the US dollar has seen.
For instance, a Twitter user stated that the US dollar is depreciating continuously over time and the volatility in bitcoin is short-term. However, the Fed still has not mentioned anything about it. Other Twitter users have said that bitcoin’s being recognized as yet a unit of account is an overall positive sign for the top cryptocurrency.
Source: https://www.thecoinrepublic.com/2022/06/07/how-did-the-crypto-community-react-to-the-feds-showing-bitcoin-instability-using-the-egg-analogy/