FED Chairmain compares Bitcoin to Gold

[pereira4]

I was surprised that I didn't see much coverage on this. This is pretty big, the guy running the FED at least officially basically knows what's up: That Bitcoin is being used a a store of value/speculation, and that it's competition for gold.

https://www.youtube.com/watch?time_continue=1&v=jBUlXryF2WI

He also admitted that US as world reserve currency may not last forever...

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[jseverson]

I personally don't think it's a big deal. He basically said that Bitcoin is a speculative store of value, and majority of its holders use it as such. He didn't paint it in a positive light at all, just that Bitcoin can perform gold's role (with no mention of its efficacy) in that respect.

I guess it's nice to have an age-old comparison being validated by someone in a position of power though.

[btc_angela]

I guess it's nice to have an age-old comparison being validated by someone in a position of power though.

This one. I mean FED admittedly that bitcoin is comparable to gold as a store of value is huge. I guess we didn't have that much publicity is because it's been overshadow by Trump's supposedly anti-bitcoin tweet. But this is a strong words coming from Powell and maybe we could see some repercussions later.

[cosmofly]

I think gold should only be compared to real estate. Because supply is increasingly rare and the demand for human consumption is growing day by day when they have a lot of cash. But for bitcoin, it seems that they are gradually unwilling to buy it. because the news of Bitcoin manipulation is increasing. the whales continually pump and dump the coins and make the investors there always bewildered.
That will be what makes people no longer trust bitcoin.

[LeGaulois]

I personally don't think it's a big deal. He basically said that Bitcoin is a speculative store of value, and majority of its holders use it as such. He didn't paint it in a positive light at all, just that Bitcoin can perform gold's role (with no mention of its efficacy) in that respect.

I guess it's nice to have an age-old comparison being validated by someone in a position of power though.

At least I think it shows that people's attitudes (especially in the finance industry) are starting to change about Bitcoin's reputation, but also its use. Five years ago, the FED had a completely different speech about cryptocurrencies.

- 10 Years when they heard about a digital and decentralized currency, they were like this => 
- 5 Years ago when they heard Bitcoin start to be useful and popular, they were like this => 
- 2019 they start to realize its potential to compete with centralized currencies, they're like this => 

[DENNB]

I think that gold could lose its value in the next decades, because there are already plans and ideas to mine valuable resources like gold and platinum on asteroids.

[LeGaulois]

I think that gold could lose its value in the next decades, because there are already plans and ideas to mine valuable resources like gold and platinum on asteroids.

On asteroids? 
Anyway, the point was not really about the value of gold or Bitcoin in the future but rather as how Bitcoin is compared to gold. The store of value story, or a saving account to make it short.
Someone above was comparing the gold market with real estate, it's a horrible comparison, both aren't even comparable in any way.

[btc_angela]

I think that gold could lose its value in the next decades, because there are already plans and ideas to mine valuable resources like gold and platinum on asteroids.

I think you mis understood the precious metal pundits. What they are seeing is that some kind of asteroids will be coming to earth with huge chunk of gold in it. But that is not they're strategy per se,. Do they really need to go out there and mine them? Or are they just going to wait that something big hitting earth?

[samcrypto]

I was surprised that I didn't see much coverage on this. This is pretty big, the guy running the FED at least officially basically knows what's up: That Bitcoin is being used a a store of value/speculation, and that it's competition for gold.

https://www.youtube.com/watch?time_continue=1&v=jBUlXryF2WI

He also admitted that US as world reserve currency may not last forever...

This maybe the reason why US President made a statement about cryptocurrency which shock the whole world of cryptomarket. This is indeed a good coverage and yet no one is talking because as we all know the cheaper price is the advantage for the whales to make profit and they will do it for themselves. Bitcoin because a store of value because of its rising price, and I can say its better than gold and its easy to own bitcoin than gold.

[Periodik]

I don't think it is proper to compare Bitcoin with Gold. The FED chairman just appeared uninformed or even totally ignorant about Bitcoin when he did that. Bitcoin could be compared to US dollar. That would be a better comparison because both are currencies, the other fiat, the other digital or cryptocurrency. But gold? Bitcoin, in the first place, is not something that is just hidden for no other sake but value appreciation. Bitcoin is meant to be spent as a money. 

[Vaskiy]

Bitcoin with gold makes sense when we validate the growth between the two. In some countries bitcoin is added to the list of gold for the taxation purpose. This way gold is being made as a multiple purpose usage asset. What FED chairman has states is about the bitcoin's speculative market, and the future role of getting more stability as gold when the adoption rate peaks high.

[jseverson]

I don't think it is proper to compare Bitcoin with Gold. The FED chairman just appeared uninformed or even totally ignorant about Bitcoin when he did that. Bitcoin could be compared to US dollar. That would be a better comparison because both are currencies, the other fiat, the other digital or cryptocurrency. But gold? Bitcoin, in the first place, is not something that is just hidden for no other sake but value appreciation. Bitcoin is meant to be spent as a money. 

He actually did acknowledge that Bitcoin could be used as currency, except it's not very widespread. That's probably why they're not that against Bitcoin in the first place -- it's less of a threat to the USD when its main use is as an investment vehicle. I could see them singing a different tune once Bitcoin's use as a currency gains traction.

[FanEagle]

I think the biggest thing coming out of this is not the thing about bitcoin but realizing that USA reserves will not last forever. They know that their reserves are getting emptier by the day and they have a lot of debt and even though they are making money and paying that debt the time for putting aside for reserves is over now and all their money is spent on paying the debts they have.

It can not be sustainable because in the end they will have more debt than money they have and eventually they will have to print some more money to pay those debts which will make dollar devalue again. Now you may think why that is more important to us than saying bitcoin is like gold?

Well, because if they realize the simple fact that they can have bitcoin reserves as well then they will as a whole nation start saving some aside which would make bitcoin price go up.

[Jating]

I don't think it is proper to compare Bitcoin with Gold. The FED chairman just appeared uninformed or even totally ignorant about Bitcoin when he did that. Bitcoin could be compared to US dollar. That would be a better comparison because both are currencies, the other fiat, the other digital or cryptocurrency. But gold? Bitcoin, in the first place, is not something that is just hidden for no other sake but value appreciation. Bitcoin is meant to be spent as a money. 

He actually did acknowledge that Bitcoin could be used as currency, except it's not very widespread. That's probably why they're not that against Bitcoin in the first place -- it's less of a threat to the USD when its main use is as an investment vehicle. I could see them singing a different tune once Bitcoin's use as a currency gains traction.

But it may take sometime though, I mean as much as we wanted to see global adoption, it might take some time. But yeah, definitely, there's nothing wrong with what chairman Powell is saying here.

He didn't say something that we can take it negatively, and we all know for a fact that bitcoin is a relatively safe store of value as compare to gold. I'm sure that goldbugs will resent Powell statement comparing gold to bitcoin, but him seeing the potential as it is, is some kind of assurance that even US is looking at bitcoin and it's potential to be used as a hedge.

[audaciousbeing]

I was surprised that I didn't see much coverage on this. This is pretty big, the guy running the FED at least officially basically knows what's up: That Bitcoin is being used a a store of value/speculation, and that it's competition for gold.

https://www.youtube.com/watch?time_continue=1&v=jBUlXryF2WI

He also admitted that US as world reserve currency may not last forever...

Comparing bitcoin to whatever does not really mean much if the person making such comparison does not hold any power by virtue of his position or personality to influence things in the crypto world. People can make suggestions or even make opinion concerning certain things its just because they want to be current and be aware of the changes happening in their environment which does not change anything. It only points to the direction that bitcoin in itself is being noticed by the people that matter in the financial world.

[TheCoinGrabber]

Now I'm worried. They wouldn't just release a statement like this in public. Maybe, just maybe the FED is also already stockpiling Bitcoins and other crypto?

Call me a bit wonky but what if they've already bought enough and just releasing this statement to raise the price and then crash it by dumping?

He actually did acknowledge that Bitcoin could be used as currency, except it's not very widespread. That's probably why they're not that against Bitcoin in the first place -- it's less of a threat to the USD when its main use is as an investment vehicle. I could see them singing a different tune once Bitcoin's use as a currency gains traction.

If they'd even allow that.

[Lanatsa]

Now I'm worried. They wouldn't just release a statement like this in public. Maybe, just maybe the FED is also already stockpiling Bitcoins and other crypto?

Call me a bit wonky but what if they've already bought enough and just releasing this statement to raise the price and then crash it by dumping?

He actually did acknowledge that Bitcoin could be used as currency, except it's not very widespread. That's probably why they're not that against Bitcoin in the first place -- it's less of a threat to the USD when its main use is as an investment vehicle. I could see them singing a different tune once Bitcoin's use as a currency gains traction.

If they'd even allow that.

Possible!

I agree that saying up these things publicly do have significant meaning behind it.They wont announce something which isnt beneficial to them.
They might or might not accumulating bitcoins,its none of our scope to know such things.They can say things all they want but as a bitcoin or crypto enthusiast
be ready on how the market would move out in near future years to come.

[jseverson]

I'm sure that goldbugs will resent Powell statement comparing gold to bitcoin, but him seeing the potential as it is, is some kind of assurance that even US is looking at bitcoin and it's potential to be used as a hedge.

Lol is this really a thing? I know that there are a couple of people who advocate dropping gold for Bitcoin, but are there also camps who think the other way around? I haven't really seen any, but that might be because I'm following the wrong circles.

-snip-

If they'd even allow that.

Well they've been allowing it thus far, albeit in a controlled environment. We'll see though I suppose.

[Maslate]

We heard from different people, but if we are a believer of crypto especially bitcoin, we will take good comments but with disagree on bad comments, but in  this world, the more influential people has the say, like Trump saying against bitcoin has shaken the market now.

[yohananaomi]

it is clear that there is a difference between gold and bitcoin, although it is indeed the same for investment, the price is clearly the most profitable bitcoin and very easy storage. the influence of the voices of world leaders will obviously be affected for bitcoin but will it continue, I doubt that it continues. still bitcoin will not be affected later.