FED Chairmain compares Bitcoin to Gold

[justdimin]

Bitcoin is quite literally the digital gold if you ask me so the comparison is on point. The people that see this as bad because it is the FED Chairman that said it and we do not like him is pure idiots, he could be the FED Chairman and he could be the reason for many financial problems of the world however the reality is that even if someone you dislike says something good for bitcoin that is still a positive because it creates a wave affect among the followers of that bad person.

Think of a political party you hate and the leader supporting bitcoin all of a sudden, even that is good because it means he is promoting bitcoin to his own followers and that makes a bigger audience for bitcoin. I think this is a good step forward for all bitcoiners and I think we are on path to big things soon.

[webtricks]

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...

And do you think he meant that in positive way? The same chairman slammed Libra coin in the very speech.
He was just stressing on the idea that Bitcoin and other cryptocurrencies cannot be considered as currencies. They are more sort of an investment. Everyone is open to intercept words in his/her own sense but to me, he sounds more like an contrarian of Bitcoin. What else could be expect from an old conventional bureaucrat.

[Coyster]

I do not think this calls for any sort of celebration as be only openly stated the obvious, we all know what bitcoin offers and it's potentials.
It has many features with gold, even though gold is actually a higher store of value than it at the moment, but talking about a network barely 15 years old, then the comparison is actually a big plus for the bitcoin.

I do not think this government officials can really have good intentions towards the bitcoin or cryptocurrencies, I actually ignore all their reviews, be it positive or negative.

[Tungsten-1]

Bitcoin is quite literally the digital gold if you ask me so the comparison is on point. The people that see this as bad because it is the FED Chairman that said it and we do not like him is pure idiots, he could be the FED Chairman and he could be the reason for many financial problems of the world however the reality is that even if someone you dislike says something good for bitcoin that is still a positive because it creates a wave affect among the followers of that bad person.

Think of a political party you hate and the leader supporting bitcoin all of a sudden, even that is good because it means he is promoting bitcoin to his own followers and that makes a bigger audience for bitcoin. I think this is a good step forward for all bitcoiners and I think we are on path to big things soon.

Bitcoin is pretty much a digital gold but I think that can save your value for long term and is in fact deflationary in nature due to the limited supply of the coin. There are far more great traits in Bitcoin that are not present in gold and that can make Bitcoin superior over gold. For example Bitcoin allows to make a one million dollar transfer from your city to let’s say Chicago instantly. It is something that goes with the modern world unlike gold.

[STT]

I dont see Bitcoin as digital gold because we can already trade gold as a digital asset if we want, the problem gold will always have is its a physical asset and when you trade or own it you rely on security of a bank or vault to keep it for you.   That gold then is a trusted token with a centrally controlled ledger.
    Gold can be seized where as Bitcoin has  no physical problem with security like that and its alot faster and tons cheaper to quickly transmit value.   BTC should be used often, gold is often stored and not moved for decades.

This one. I mean FED admittedly that bitcoin is comparable to gold as a store of value is huge.

BTC is an asset and gold is also and people can speculate on either, I dont take it as a great statement.   But sure on the face of it, he said the magic words and didnt spit on the ground as he said Bitcoin  

[bitgolden]

TRUMP is just a useless selfish man, he is a business man, and I am sure that he secretly has an investment in bitcoin, which I also believe that he has already sold his investment , and he needed to get another chance to buy at cheaper price again, which  is why he probably created such FUD news.

I guess he succeeded anyway, bitcoin fell below $10000 recently, and I hope it does not get worse than that, anyway, no matter how worst it gets, it would not take much long before it finds its way up gain, and I believe that this chance too was created for some of us to put more money, when I saw the price drop that low some days again, I was actually happy, that  I had to rush to use my credit card to convert some fiat into bitcoin, I am sure many people would be doing this also.

[akosijue]

Well, from the first get go, we all know that most or rather so many doubts have been put on cryptocurrencies before it was even launched so i'm not suprised by these guys reactions.

As for me, digital gold would be like facebook currencies so I wouldn't think of it as Bitcoin for now because of the market stability, we'll see tho.

[buwaytress]

I saw plenty of coverage, relatively, considering that Libra's hearing has been taking centre stage. Mostly on negative though, but that's just a demonstration of how an entire discussion that can be objective and contain many sides of any story and yet have 10 different media pieces pick up the parts that suit their agendas the most.

Bitcoin comparison to gold can exist in the same breath as comparison to say, terrorism, and magic internet money. And they actually do =)

[Leyss]

Bitcoin can not be considered digital gold, even comparing these financial assets with one another is very difficult, because between them there is actually very little in common, and most of the signs are exactly the opposite.
One of the main reasons why Bitcoin cannot be considered digital gold is its high price volatility, which, it seems, will always be in Bitcoin.

[bitgolden]

Well, from the first get go, we all know that most or rather so many doubts have been put on cryptocurrencies before it was even launched so i'm not suprised by these guys reactions.

As for me, digital gold would be like facebook currencies so I wouldn't think of it as Bitcoin for now because of the market stability, we'll see tho.

I dint think Facebook coin can ever pass the test of being recognized as digital gold, if I wanted to save my money, I would rather leave it in the bank than to change it to Facebook stable coin, of what benefit or interest would it yield me. Normally, gold being use as store of value should appreciate from time to time, and this is why many people prefer to hold it for long term investment.

For Facebook coin, this is more of a stable coin that will just be used as utility token, no increase, just stagnant, not even decentralized for us to say it will keep the identity of those who store money on it is covered. The only coin that can pass that test to be called digital gold is still bitcoin, and I think it is gradually getting there fully. Once bitcoin supply becomes very limited, its digital gold nature will be activated.

[BitHodler]

Once bitcoin supply becomes very limited, its digital gold nature will be activated.

It's already limited. If we look at how much demand there has been for Bitcoin throughout the years, there is no reason to think of why the coming years should or could be different with more fundamental developments.

Sure, speculation is still the main driver of the price, but with Bitcoin growing larger and maturing more, different use cases will slowly catch up and push back the dominant force within the speculative nature of it.

There is little over 3 million BTC left to be mined. We know when the last satoshi will be mined, and when much sooner the mining rewards will no longer add anything of significance to the total number of coins in circulation.

With gold we don't know anything about its actual circulating supply, and how much there is left to mine. This transparency is extremely bullish for Bitcoin and allows every person to front run the reward cuts.

[STT]

Bitcoin is quite literally the digital gold if you ask me so the comparison is on point.

Very different assets physical and virtual.   They are both alternatives to the dollar but thats not a real reason to put them in the same category and not even close to being the same thing.   Crypto when done properly is decentralised where gold has a problem of storage and verifying its condition and quality on every exchange, they are not close in this respect or many others.
   Just a brief examination of the two asset details has them immediately differing to a large extent, how can they really be the same.   They will have separate dynamics always, the dollar decline might have universal price alternations but this just a reflection of that dollar influence.

  I'm sure BTC and gold will always be altering their ratio, I'd not state one over the other but its not going to be fixed or a strong relationship.   For gold keeping a ratio to oil I think it should display a correlation, the reason being the cost of energy in gold mining is very often a large component.   So we immediately have a reason to be comparing gold and oil even though they are quite different commodities there is a relationship ongoing.

I would rather leave it in the bank than to change it to Facebook stable coin, of what benefit or interest would it yield me.

The only detail I heard would be the FB coin would be a basket of currencies rather just one.    In some countries with weaker currency it would be useful to have a link to many countries currency worth, diversified to global GDP growth or purchasing power a bit better.   

[Kakmakr]

It is actually easy to explain his actions, because he is simply saying this to highlight that Bitcoin is more like a speculative asset than a currency. His main mandate is to protect the US Dollar and by deflecting the attention that Bitcoin is getting as a currency. It is all smoke and mirrors and people in his position does not want to openly be aggressive towards emerging technologies, because it would raise suspicion.

This is also why Donald Trump is tweeting about Bitcoin and Libra now, because he is getting advice from people like this. They know Bitcoin is a two edged sword and it will hurt them, if they ignore the possible advantages of this technology.    < Like tracking all transactions on a Blockchain in a Utopian regulated environment.> 

[davis196]

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...

Every guy with at least basic knowledge about economy and finance knows the things that the FED chairman is saying.USD won't survive forever as a reserve currency,because the government debt will explode sooner or later.Bitcoin is a speculation tool,but it won't be a speculation tool forever.The price volatility will go down,if there's mass bitcoin adoption.

[Upgrade00]

He actually portrayed Bitcoin in it's actual form and how it has matured over the years. Speculation is the main reason most are in cryptocurrency now, the potential for growth, and this is tied to volatility which I would say is gradually on the decline.

Coming from him considering the position he holds fives Bitcoin a higher level of publicity.
With volatility and mass adoption would Bitcoin become more useful as a means of making payment? That we would see in the coming years.

[barbara44]

Even though he didn’t completely speak in favor of bitcoin, but at least he didn’t speak against it neither unlike the one trump openly declared hatred for bitcoin, it is a good thing that this statement from FED is coming now too from him, being a well-known figure, it will still be able to at least neutralized whatever trump said a little, at least people will still see that there is positive thing to be achieved through bitcoin even though it was not directly supported.

The population of Americans in cryptocurrency market is quite high and we still cannot afford to lose them all because they might panic sell on what trump said, but now that FED chairman still shed little light, it will still make them hold on a little longer. We still need more adoption of crypto now and not losing it at this critical period.

[Jating]

Even though he didn’t completely speak in favor of bitcoin, but at least he didn’t speak against it neither unlike the one trump openly declared hatred for bitcoin, it is a good thing that this statement from FED is coming now too from him, being a well-known figure, it will still be able to at least neutralized whatever trump said a little, at least people will still see that there is positive thing to be achieved through bitcoin even though it was not directly supported.

Trump statement is baseless with the Fed Chairman has some weight it in.

The population of Americans in cryptocurrency market is quite high and we still cannot afford to lose them all because they might panic sell on what trump said, but now that FED chairman still shed little light, it will still make them hold on a little longer. We still need more adoption of crypto now and not losing it at this critical period.

Well it will really have a big impact if we lose the US market, but then again, Americans will likely still invest on bitcoin because they really know the potential of this asset. It's been performing very strong in the last couple of years that smart Americans will still go for it despite their President's statement about it.

[The Sceptical Chymist]

On asteroids? 

Yeah, I heard something about that a while back but don't know how true it is.  If asteroid miners know what's good for them, they'll leave any gold found there alone.  Can you imagine diluting the gold market that way?

I do not think this calls for any sort of celebration as be only openly stated the obvious, we all know what bitcoin offers and it's potentials.
<snip>
I actually ignore all their reviews, be it positive or negative.

Definitely no call for celebration here, and I also pretty much ignore what the Fed has to say about anything.  They're a bunch of really smart morons with too much power. 

The gold vs. bitcoin comparison has been going on longer than I've been a member of this forum, because I recall it being discussed when I was just a lurker--and I'm sure people are going to be comparing the two things well into the future.  Bitcoin hasn't quite proven itself to be a safe store of value, certainly not in the league of precious metals.  There's still way too much volatility and it's just too young.  Maybe if bitcoin starts to become stable it'll become a safe haven asset, but I highly doubt that's going to happen.  It's way too easy to speculate in bitcoin, and its market cap is still too small for the big money players to get involved with.

[goaldigger]

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.

Its the same as Warren Buffet and Craig Wright on their points on bitcoin, blockchain and cryptocurrency. We all have our own perceptions about digital currency and gold but its always the way how we handle those things that has been said by those big influencers.

[josephdd1]

BTC has always been compared to gold or something else like that. Even today every one of us compares btc to usd prices. Its almost like the success of this asset is dependent on the prices it'll fetch on the open market against usd. That's a flawed system in my opinion. Until we stop this basic comparison, everything will stay the same and btc will continue to be wrongly compared to gold and other precious metals. Which is wrong, there has never been anything like BTC and it is unique and it will not be comparable.