Video of Mario Draghi knocking Bitcoin ages like milk as euro sinks to parity with dollar
Recently posted video @CarlBMenger Shows that former European Central Bank Governor and current Italian Prime Minister Mario Draghi are slate Bitcoin.
In a short clip dated March 2018, Draghi warned against investing in Bitcoin and praised the euro as a stable currency with the addition of ECB support.
“As you know, #Euro today #Euro tomorrow. The value is stable.The currency is backed by the central bank, but no one #Bitcoin.. “
– ECB President Mario Draghi | March 2018 pic.twitter.com/pDM4PuyM5x
— Carl ₿ Menger ⚡️. (@CarlBMenger) July 12, 2022
But about four years later, fiat money is at stake due to reckless central bank monetary policy, and the euro has sunk almost as much as the dollar, putting further pressure on eurozone countries.
Bitcoin isn’t supported by anything, according to Draghi
The video started with a question raised by Draghi about the benefits of buying Bitcoin. Draghi replied, “It’s not up to me,” to tell people what to do.He said people “should think about it” [through] Be careful. “
Draghi then decided to praise the euro as a stable currency, unlike Bitcoin, which “vibrates violently.” Therefore, he said he does not consider Bitcoin as a currency.
In another bargain at the BTC, Draghi added that the ECB favors the euro and the Fed favors the dollar, but “no one favors Bitcoin.”
“The currency is supported by the central bank or its government. No one supports Bitcoin.”
Fiat critics argue that Draghi’s comments on central bank support are not strictly correct.according to InvestopediaFiat currency is supported by trust and trust in the issuing government.
“When people lose confidence in a country’s currency, the money no longer retains its value.”
Recently, confidence in the government and authorities in general has declined. for example, Forbes A recent Edelman confidence barometer survey reported that even in developed countries, one in two found that they did not trust their respective governments.
“Even in the wealthiest countries in the world, one in two does not trust government, political leaders are less trusted than business leaders, but more trusted than the media.”
Why Euro / Dollar Parity Is Important
The depreciation of the euro is seeing dollar equality for the first time in almost 20 years. At the beginning of 2022, 1 euro was trading at about $ 1.13. If you fast forward so far, the price has been around $ 1.0062 as of Wednesday.
The move to parity has shown slower international trade in EU countries that use the euro, further exacerbating concerns about a recession. Robin BrooksThe Chief Economist of the Institute of International Finance said:
“It is becoming increasingly clear that the euro area is heading into recession, despite the tighter financial situation than the United States and Japan.”
In addition, given Draghi’s previous comments, hitting the dollar’s parity shows that the ECB has no power to defend the euro’s slide.
