Bitrabo Editorial
In just a few moments, Jerome Powell, the Chair of the Federal Reserve, will preside over a meeting where it’s anticipated that the central bank will reduce interest rates by 25 to 50 basis points. Before this decision is disclosed, an intriguing art piece, the inflatable “Bitcoin rat” by Nelson Saiers, has made a comeback.
The Bitcoin Rat at Jekyll Island: A Historic Location
This large inflatable Bitcoin rat has found its home on Jekyll Island, a remote spot off the Georgian coast, known for hosting a clandestine gathering over a century ago that paved the way for the creation of the Federal Reserve. The pivotal meeting in the fall of 1910 assembled six major bankers of the time to formulate a strategy aimed at preventing another financial panic like that of 1907.
The Panic of 1907 resulted in a 50% drop in the stock market and sparked widespread bank runs. The discussions from this meeting led to the foundational structures of the Federal Reserve. The secrecy surrounding the event was so extreme that the bankers were invited under the pretense of a duck hunting trip, with strict instructions to use only first names.
Bertie Charles Forbes, a financial reporter and founder of Forbes Magazine, famously referred to this gathering as the “strangest, most secretive expedition in the history of American finance.” The art installation serves as a commentary on how the repercussions of that secretive banker meeting are still felt today as the public anticipates the Fed’s decision on rates.
Nelson Saiers, the artist behind the Bitcoin rat, expressed, “Many people perceive our financial system as benefiting bankers rather than the everyday individual. Given that the Fed was established secretly among bankers, it’s easy to understand why there is some skepticism about fairness in the game.”
Insights from Nelson Saiers on Bitcoin and Debt
Nelson Saiers, the creative mind behind the Bitcoin rat, is known as an artistic figure in mathematical and financial circles and has previously worked as a hedge fund manager. Frequently likened to Andy Warhol of the finance world, Saiers’ artwork often critiques the Federal Reserve.
His inflatable rat is uniquely embellished with the Bitcoin protocol code, reflecting his fascination with the cryptocurrency. “The enormity of our national debt is quite alarming. I believe this is part of what drives interest in Bitcoin,” Saiers commented. He further remarked on Bitcoin’s resilience, stating, “Bitcoin has proven to be robust, even in the wake of challenges like FTX.”
Timing the installation to coincide with today’s Federal Reserve meeting, Saiers also intended it to mark the anniversary of the U.S. House of Representatives passing the Federal Reserve Act in 1923, which was later signed into law by President Woodrow Wilson on December 23, 1913.