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> the Fed's money needs to go somewhere

Having excess savings go into cryptocurrencies would be a stabilizing mechanism. It keeps it away from consumption, staving off inflation. And it keeps it away from financial assets, avoiding a generalized speculative boom. As long as cryptocurrencies remain decently segregated from the main financial system, the whole mechanism becomes a heat sink.

I really enjoyed what you've said here and I agree that the traditional finance and the wild west crypto finance world _can_ absolutely work in concert with each other.

Just liquidated BTC to cover a down payment at my local bank where I've paid off mortgages already. The VP of the loan department completely understood why I wouldn't keep my money in their bank anymore.

I'm not knowledgeable enough in monetary economics, but isn't this only half true? The money people are buying crypto with is going to whomever they purchased it from.

The FRED Blog, «What’s behind the recent surge in the M1 money supply?»

https://fredblog.stlouisfed.org/2021/01/whats-behind-the-rec...

Yes of course, the Fed created trillions of dollars and doesn't know what to do with it.