The St. Louis Federal Reserve published a blog post with the egg-to-bitcoin ratio in an attempt to criticize the latter’s volatility, but ended up being ridiculed for the example.
Bitcoin volatility case solved
According to mail “Buying Eggs with Bitcoin – A look at currency-related price volatility,” the Eggs/BTC chart, the FRED chart, essentially compares USD vs. Bitcoin egg prices.
Initially, the Fed’s research arm has shown the price of eggs in US dollars every month since January 2021. The price ranged from $1.47 to a high of $2.52. He then multiplied the price by 100 million to reflect it in satoshi, the smallest unit of bitcoin. It was noted that price fluctuations ranged from 2,829 to 6,086 over the same period of 14 months.
The bottom line is that they wanted to show bitcoin as more volatile and unpredictable than the US dollar. The Feds also brashly wrote about transaction fees and added:
“Also, you will need to add in the bitcoin transaction fee, which has been around $2 lately but can sometimes go over $50. Hopefully, if you were making this purchase with bitcoin, you would put a lot more eggs in your basket.”
Cryptocurrency community lashes out
The crypto community is not holding back. While some have called the Fed “poisonous fiat maximalism,” others have sought to point out the organization’s shortcomings and inability to decrease and completely missed the subsequent devaluation of the US dollar. Bitcoin Standard author Saifedeen Ammos also urged the Fed not to see the long-term picture and tweeted,
“People with high time preferences draw bold conclusions from short-term data without seeing the long-term picture.”
Others took it as a bullish signal that even the Fed pricing some consumer goods in BTC. Economist and bitcoin investor Tuur Dimester admitted that the Eggs/BTC chart was created to not only reflect bitcoin volatility, but also said that she managed to “add another rung to the belt of trust in hard digital money.”
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Credit : cryptopotato.com