Fed Prices Eggs in Bitcoin but Misses the Big Picture: Crypto Community Reacts

The St. Louis Federal Reserve later published a blog post with the egg ratio to criticize the volatility, but the example was ridiculed.

Cracking the bitcoin-volatility case

according to Post “Buying Eggs with Bitcoin – A Look at Currency-Related Price Volatility,” Eggs/BTC Graph, FRED Graph, essentially compares egg prices in USD versus bitcoin.

Initially, the Fed’s research arm showed the price of eggs in USD for each month from January 2021. The price continued to oscillate between the $1.47 and $2.52 highs. Next, it multiplied the price by 100 million to reflect it in bitcoin’s smallest subunit, the satoshi. It was observed that the price movement in the same period of 14 months ranged between 2,829 and 6,086.

The bottom line is that they wanted to make bitcoin appear more volatile and unpredictable than the US dollar. The Fed also wrote about transaction fees and added,

“In addition, you will need to add a bitcoin transaction fee, which has recently been around $2, but which on occasion can rise above $50. Hopefully, if you were making this purchase with bitcoin, you would Will put many more eggs in his basket.”

crypto community lash out

The crypto community does not hold back. While some called the Fed’s “toxic Fiat maximalism,” others were inclined to point out errors and the inefficiency of the unit. zoom out And on the subsequent devaluation of the USD completely disappeared. Saphedian Ammos, author of “The Bitcoin Standard”, also called out the Fed for failing to see the long-term picture and tweeted,

“High Time Preferences Draw Bold Conclusions From Short Term Data, Fail To See Long Term Picture.”

Others see this as a bullish sign that the Fed is also price ceiling Some consumer goods in BTC. Economist and bitcoin investor Tur Demeester acknowledged that the egg/BTC graph was created to gauge bitcoin’s volatility, but also Told That it “managed to add another notch to Hard Digital Cash’s reliability belt.”