“RFK Jr. Proposes Crypto as Solution to US’s Federal Reserve Dependency”


‘The best hedge against inflation’: RFK Jr. believes crypto could cure America’s “addiction” to the Federal Reserve

The consumer price index has risen by 20% since the beginning of 2020, despite a recent drop in headline inflation. This has affected the value of money in a significant way.

In his words, independent presidential candidate Robert F. Kennedy Jr. believes that inflation effectively reduces “the freedom to keep the fruits of your labor.”

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Kennedy’s analogy comparing inflation to an addiction is spot on. As prices continue to rise, the purchasing power of our salaries diminishes.

For those looking for strategies to combat inflation, Kennedy recommends turning to cryptocurrencies.

“Cryptocurrency is the off-ramp for our addiction to the Federal Reserve. It’s the best hedge against inflation,” he states in a recent tweet.

The Fed: America’s Economic Addiction

Inflation can be triggered by the monetary policies of the Federal Reserve. In response to the COVID-19 pandemic, the Fed implemented quantitative easing, which is essentially an increase in the money supply.

This money printing can lead to inflation when there is an increase in the currency in circulation without a corresponding increase in goods and services. As a result, prices rise as there is more money chasing the same number of products.

To combat future inflation, the Fed has tightened monetary policies by increasing interest rates and reducing their balance sheet. However, Kennedy is a critic of this approach, denouncing both inflation and high interest rates as “poisonous medicines.”

Read more: How Jeff Bezos and his sister turned a $10K investment in Amazon into over $1B

Can Cryptocurrencies Save the Day?

While Kennedy does not recommend a specific cryptocurrency as an inflation hedge, many attribute the rise of Bitcoin to people’s growing skepticism towards fiat money. Unlike fiat currencies, Bitcoin cannot be printed at will by central banks. Its supply is capped at 21 million by a mathematical algorithm.

In addition to their potential as a hedge against inflation, Kennedy also sees the independence of cryptocurrencies from the traditional financial system as a major advantage.

“[Cryptocurrency] takes control away from the government and from the monopolistic banking system, which uses money printing to shift wealth upward to the oligarchy of billionaires while impoverishing regular Americans,” he remarks.

While Kennedy does not explain the mechanism of this wealth shift, the effects of inflation on the rich and poor have been widely scrutinized. According to a report by the non-profit organization Oxfam, the world’s billionaires have become $3.3 trillion wealthier during the pandemic, while the working class struggles to keep up with inflation.

“The wages of nearly 800 million workers have failed to keep up with inflation and they have lost $1.5 trillion over the last two years, equivalent to nearly a month (25 days) of lost wages for each worker,” the report states.

If you are considering using cryptocurrencies as an inflation hedge, be aware that they can be highly volatile. Additionally, while many platforms allow individual investors to buy and sell crypto, some exchanges charge up to 4% in commission fees per transaction.

What’s Next?

This article is for informational purposes only and should not be taken as financial advice. The information provided is “as-is” and without any warranty.

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