The recent bankruptcy of key US banks and the importance of federal intervention have once again aroused discussion to confirm the most effective way to maintain the precarious economic development. John Schiff, a well-known economist, generalized this incident with the 2008 financial crisis and unexpectedly found that the strong strengthening of banking regulation aggravated the catastrophe of the financial crisis.

A detailed analysis of Silicon Valley Bank (SVB) by a team of economists shows that nearly 190 US banks are at risk of depositor-driven bankruptcy. The meeting pointed out that the fiscal policies formulated by central banks are likely to hurt long-term assets such as bonds and mortgages and cause economic losses to banks.

The financial crisis in 2008 was generally driven by the collapse of the real estate market. However, Schiff believes that this dilemma is caused by "too many regulators".

Schiff noted that the US introduced a new banking regulatory requirement after the 2008 financial crisis, while the performance pledge "what is happening now will never happen again." He added:

"but one of the reasons we suffered from the 2008 financial crisis was that there were too many countries. Control. That's why this dilemma is getting worse.

Fully considering that Puerto Rican regulators closed Schiff's bank on July 4, 2022, it is crucial for Schiff to find a better balance between supervision and banking organizations.

At the time, Crypto Twitter reminded Schiff why tens of millions of people around the world chose BTC (BTC) for loan guarantees to pursue the arbitrariness of the financial sector.

Data encryption entrepreneurs, on the other hand, are now doubling their bets on BTC's legendary comeback. Balaaghi Srinivasan, former technical director of Coinbase, predicts that bitcoin will be worth $1 million within 90 days.

Pseudonym Twitter users James Medrox and Srinivasan made the bet based on their different views on the future of the US economy, according to Cointelegraph.

Srinivasan's bargaining chips revolve around a pressing dilemma that could lead to dollar deflation and the bitcoin market to $1 million.