Gemini co-founder Tyler Winklevoss is speaking out against the US banking system, saying that the government created the current crisis.
The billionaire tells his one million Twitter followers that he believes the US banking industry is a caste system designed to favor the wealthy.
According to Winklevoss, the government created a system that is likely to only cover deposits in banks deemed “too big to fail,” while leaving others out to dry.
“The US banking system is a modern-day caste system. There are those who are banked by Bulge bracket banks. There are those who are banked by regional banks. And there are those who are banked by no bank at all.
The uninsured deposits of those who bank with a Bulge bracket bank are all but guaranteed by the US government as these institutions are deemed Systemically Important Financial Institutions (SIFIs) or ‘Too Big to Fail.’
The uninsured deposits of those who bank with a regional bank may or may not be backstopped by the US government depending on whether its failure would create financial contagion in the greater banking system as determined by a super majority of the FDIC board, a super majority of the Fed Board, and Secretary of the Treasury in consultation with the President. In other words, there is no guarantee at all.”
Winklevoss also comments on the government’s handling of the situation, saying that the state both caused the banking crisis and failed to avert it.
“The US government did a great job averting a banking crisis. Almost as great of a job as they did starting it.”
Cameron Winklevoss, the other Gemini co-founder, says that the Federal Reserve’s recent growth of its balance sheet to rescue the banking system is giving people more reasons to accumulate Bitcoin (BTC).
“The Fed just gave everyone $300 billion more reasons to buy Bitcoin.”