Simon Dixon, a crypto investor and influencer, has said that Bitcoin operates independently of the Federal Reserve and would "survive" even if the Fed collapsed. Dixon made this assertion in a January 13 post on X.
"It is being fed $USD by the Fed but it definitely does not need the Fed," said Dixon. "The Fed can crash and Bitcoin will survive."
According to Dixon, his comments were in response to Eladio Santiago, president and CEO of Strategic Investments Corp, who had remarked on X that Bitcoin is a "risk asset" requiring "free money from the Fed." Dixon replied that while Bitcoin may be "fed $USD by the Fed," it does not rely on the Federal Reserve for its survival.
Simon Dixon's post
| X
Bitcoin functions as a decentralized digital currency, operating independently of central banks or governmental control. It relies on a peer-to-peer ledger system, which enables secure transactions without requiring intermediaries, providing an alternative to traditional financial systems. This was reported by James McWhinney for Investopedia.
Trust Machines has reported that Bitcoin's decentralized network makes it highly resistant to attacks since no single entity controls the blockchain. The cryptocurrency also employs cryptographic methods such as asymmetric encryption to protect transactions and ensure user privacy. Transactions are immutable, meaning once recorded, they cannot be altered, ensuring the integrity and transparency of the blockchain. Additionally, Layer 2 protocols like the Lightning Network improve scalability without compromising security.
The Federal Reserve, founded in 1913, serves as the central bank of the United States. It is responsible for conducting monetary policy, regulating and supervising financial institutions, and providing banking services to the U.S. government. According to its website, it uses tools such as setting interest rates, managing money supply, and overseeing systemic risks.
Dixon is known for his investments in over 100 crypto companies including Kraken and Coinbase. He creates crypto content on X and YouTube and is the CEO and co-founder of BnkToTheFuture, a regulated crypto securities business according to LinkedIn.
