Gemini co-founder Tyler Winklevoss is speaking out against the US banking system, saying that the government created the current crisis.

The billionaire tells his one million Twitter followers that he believes the US banking industry is a caste system designed to favor the wealthy.

According to Winklevoss, the government created a system that is likely to only cover deposits in banks deemed “too big to fail,” while leaving others out to dry.

“The US banking system is a modern-day caste system. There are those who are banked by Bulge bracket banks. There are those who are banked by regional banks. And there are those who are banked by no bank at all.

The uninsured deposits of those who bank with a Bulge bracket bank are all but guaranteed by the US government as these institutions are deemed Systemically Important Financial Institutions (SIFIs) or ‘Too Big to Fail.’

The uninsured deposits of those who bank with a regional bank may or may not be backstopped by the US government depending on whether its failure would create financial contagion in the greater banking system as determined by a super majority of the FDIC board, a super majority of the Fed Board, and Secretary of the Treasury in consultation with the President. In other words, there is no guarantee at all.”

Winklevoss also comments on the government’s handling of the situation, saying that the state both caused the banking crisis and failed to avert it.

“The US government did a great job averting a banking crisis. Almost as great of a job as they did starting it.”

Cameron Winklevoss, the other Gemini co-founder, says that the Federal Reserve’s recent growth of its balance sheet to rescue the banking system is giving people more reasons to accumulate Bitcoin (BTC).

“The Fed just gave everyone $300 billion more reasons to buy Bitcoin.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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A prominent crypto influencer is doubling down on his belief that Bitcoin (BTC) continues to serve as an inflation hedge even after its deep correction last year.

In a lengthy thread, Bitcoin bull Anthony Pompliano explains to his 1.6 million Twitter followers why BTC is still the best hedge against inflation despite the king crypto’s bearish price action in 2022 when prices of goods and services were soaring.

According to Pompliano, those who dismissed Bitcoin last year missed the big picture.

“Markets are forward looking. So when the Fed said they were going to bring down inflation, investors sold their inflation hedge assets to buy treasuries and value stocks. They didn’t wait for inflation to come down. They front-ran what the Fed said they were going to do.

Many people incorrectly pointed out that Bitcoin’s crash in 2022 proved it wasn’t an inflation hedge. That couldn’t be more inaccurate. You would expect inflation hedge assets to fall in price when the Fed is bringing down inflation. Surprise! That is what happened.”

The crypto influencer also says that Bitcoin’s recent 60% price upswing can be attributed to the king crypto’s response to the current macroeconomic situation.

“Bitcoin is up 60% to start 2023. Why is that happening? The market has realized that the Fed has raised interest rates by 4.5% and sold $1 trillion off their balance sheet, yet inflation never fell below 6%. Now the Fed is increasing [its] balance sheet and inflation is accelerating.

Bitcoin is responding to the current macro situation. The market is forward looking and it knows that inflation is going to be higher, and last longer, than previously believed. The Fed has no choice. Investors need an inflation hedge again. Bitcoin is the big winner.”

Pompliano goes on to say that Bitcoin’s correlation to inflation is simple and that traders should learn to ignore all the “noise” in the market.

“Bitcoin is the best inflation hedge asset in my opinion. There is a lot of noise in the market. Learn to ignore it. When inflation expectations increase, people buy Bitcoin. When inflation expectations decrease, people stop buying Bitcoin.”

Bitcoin is trading for $27,161 at time of writing, a 3% gain on the day.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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