FED Chairmain compares Bitcoin to Gold

[davinchi]

I think USD can survive if they go back on the old ways of backing it up with something. Countries are missing the point of reserves, if you have reserves but have debt then you are doing it wrong. There is this weird system where everyone has debt, how does everyone have debt, what are these countries doing debiting each other in turn? The reality is that they are actually putting money in reserves and that is the problem.

Now, instead of reserves if they do dollar backed by gold and make that higher and higher and gather as much gold as possible to print more dollars than the rest of the money they have will go to paying their debts. If every nation does that and instead of putting bunch of stocks, bonds, treasury stuff and even foreign currencies in their reserves, they will be capable of actually paying their debts. High reserve while having high debt makes no sense.

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[pereira4]

I think USD can survive if they go back on the old ways of backing it up with something. Countries are missing the point of reserves, if you have reserves but have debt then you are doing it wrong. There is this weird system where everyone has debt, how does everyone have debt, what are these countries doing debiting each other in turn? The reality is that they are actually putting money in reserves and that is the problem.

Now, instead of reserves if they do dollar backed by gold and make that higher and higher and gather as much gold as possible to print more dollars than the rest of the money they have will go to paying their debts. If every nation does that and instead of putting bunch of stocks, bonds, treasury stuff and even foreign currencies in their reserves, they will be capable of actually paying their debts. High reserve while having high debt makes no sense.

They are obviously not going to do that. If they really wanted to "kill" Bitcoin, all they would need is going back to the gold standard, however a hard-money based economy creates a different array of problems from those which can be observed now. The most important and selfish one from their perspective, is that they would lose the ability to run an imperialist monopoly in which they are printing the world reserve currency at a desired rate while the rest is forced to accept it, rendering them as the de-facto king of the castle. However this is coming to an eventual end with the expiration of the petrodollar and here is where Bitcoin will play a mayor key.

[darewaller]

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.

That is right, bitcoin will stop becoming subject of speculation soon, and the price will become very stable, at this point is when everyone will really see the benefit of cryptocurrency, people are still judging bitcoin right now because of the way the market makers or the whales manipulate the market and then use it to steal money from the weaker ones through panic sell and fomo.

The time bitcoin will become finite, all these will no longer be there and maybe then, trump will understand that they need to embrace cryptocurrency, especially bitcoin since the dollar is already getting weaker, trump is just trying to so all his possible best to strengthen the fiat which is why is still kind of against crypto, but very soon, I am sure he will understand when fire starts burning his roof.

[South Park]

I think USD can survive if they go back on the old ways of backing it up with something. Countries are missing the point of reserves, if you have reserves but have debt then you are doing it wrong. There is this weird system where everyone has debt, how does everyone have debt, what are these countries doing debiting each other in turn? The reality is that they are actually putting money in reserves and that is the problem.

Now, instead of reserves if they do dollar backed by gold and make that higher and higher and gather as much gold as possible to print more dollars than the rest of the money they have will go to paying their debts. If every nation does that and instead of putting bunch of stocks, bonds, treasury stuff and even foreign currencies in their reserves, they will be capable of actually paying their debts. High reserve while having high debt makes no sense.

They could do that but that will bring huge troubles to the economy and it is probably their last resort, to begin with that will devalue the dollar against gold, second there are some conspiracy theories claiming that governments have been selling some of their gold reserves to keep the price of gold in check, if true then it is possible the US government will have to implement something similar to the Gold Reserve Act that made illegal the private possession of gold.

How many times people need to see the same event happening in front of their eyes before they understand it never ends well? It is always the same story, at first the government uses sound money, gold or a currency fully backed by gold, then they begin to print more money and the currency gets devalued, after some time the currency becomes fiat with no backing of any kind, and at the end the currency fails and the government goes back to step one, but there is a difference now and that is that bitcoin exist so you can refuse to play their game and use a form of money they cannot print at will.

[Findingnemo]

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.

People only see the prices so they are comparing one expensive think to the other even we compare the price of bitcoin in USDs not in satoshis right.

It will only change if we have things to buy in satoshis not in cents.

[Polo7]

PEOPLE, PEOPLE Let's get some financial education Here!


When gold Goes  up and stock market then Bitcoin will go up too!!  

Anything what u trade against fiat currency is asset.
Gold is asset btc is asset.



Assets dont have value without fiat currency!
Assets like a Bitcoin gold and even property are just   the other side of APEX,  it means they are the counter balance against fiat currency like USD.



In other words without fiat currency the gold has no value and neither btc has value.


What we know is When Gold price is high then inflation rate for fiat currency is high too.
Same Goes for Bitcoin!
Gold, stocks, property and btc are the Same asset class!!

When btc price Goes up it does not mean the btc price is going up.... It means,  fiat currency quantity is bigger then btc quantity!
Same Goes for Gold, higher the price the higher the inflation for fiat!


I Hope I have described how it works Perfectly!



Merit will do Good  but not Requirred.

[Polo7]

Something less/more creates demand.
Less= more sacred.
More= less sacred.
Gold is not so sacred anymore, we have allready more Gold in the world, it use to be more sacred.



For each credit there is equal ammount of debit.
For negative  10 there must exist positive 10.

That's how it all works folks;) 

[Devotionless]

What makes btc superior to gold is that you can actually transport large amounts.

[STT]

Gold is very compact, I wish that any of us were so rich that we could not transport that wealth.   Sadly we can all lift a dozen kilograms but never actually purchase this much in gold, its really not a problem in the age of a car being so cheap to use.
   In future gold will weigh even less for the equivalent value, if thats the problem it will lessen have no fear.

Assets dont have value without fiat currency!

This is upside down.   FIAT is just a token promise, it has no worth by itself.    If government demands you own this to pay taxes, now it has a worth and so it circulates based with that worth.   However cash notes or debt only works if the originator continues to honor their original parameters.    The dollar no longer has any fixed link to anything at all, its controlled in its descent but its inevitably losing value from a never ending over issuance to service excess debts.
    If you hold dollar you have a fist full of sand and it will fall away till you have nothing in your hand, it stands for nothing currently and when viewed over 50 years can be said to have defaulted and failed even.   However we trade day to day and week by week and it suffices but theres nothing there as an asset imo

The proper assets hold a set order without any market even and even BTC qualifies in that asset value without any price being needed.   Even without a price, gold has elemental properties that are unique.   BTC has a unique quality to it also, the value might be debated, prone to varying demand but its unchanged in its original purpose and utility so far as I can see.

[redsun114]

I will not look at this tweet seriously because the person involved in the tweet is far less than those who uphold the Bitcoin in the financial world. Some of these twwets are out of desperation from them and the government, Bitcoin is more valuable than the said gold, most of these tweet might just be another way to create tension to buy Bitcoin, let's be wise before they fool us.

But this tweet of his never interpreted negative thingto me for it to have any negative effect on bitcoin, the only tweet that I saw really did some little damage was that of President trump directly wen he said some nasty things about bitcoin, it did actually affect bitcoin price, because it dumped alot, just that it coincided with bitcoin correction, and many people thought the dumping was still part of the correction that bitcoin has been on for a while now.

They all now the truth about bitcoin of being so importance and of being a very perfect system, which is why trump would even recognize it in the first place, it show they must have really seen lots about bitcoin, but they would not want to accept it yet for some governmental reason, but deep inside of them, they know that bitcoin could pass the test of being a digital gold.

[lixer]

The greatest news is that recently it turned out some other big politician (I totally forgot but he was someone like head of SEC or something) was talking about how he likes bitcoin over libra, they were questioning libra and what it will do and how it will do it there and libra people were defending themselves, dude just plainly said he would prefer bitcoin over libra.

Now, you may think thats normal because you are an educated young person compared to these people but the guy I am talking about is probably like 50+ years old at least and is a politician not a finance guru, hence bitcoin being better than libra reached all the way to older people as well which is why it worth a lot to us.

I mean we knew it but if the world knows it and Libra becomes huge nevertheless that means bitcoin will be even bigger.

[BitHodler]

I mean we knew it but if the world knows it and Libra becomes huge nevertheless that means bitcoin will be even bigger.

Bitcoin will always have its own appeal with how it is a digital version of gold, while Libra is backed by a basket of different fiat currencies with one major thing in common, which is that they all lose a lot purchasing power.

If it works the same as the dollar, which I'm sure it will, and by that time Bitcoin has gained even more ground as digital gold, people will lean towards Bitcoin more because of how it provides them a hedge against Libra.

The only downside is that based on its governance model, it's very similar to how EOS works where block producers can censor transactions and even freeze your balance. Time will tell how people will deal with this.

[danherbias07]

Commodity/Currency.
Not a problem for me since I have been looking at bitcoin like that for years.
But for a FED to admit it? Hmmm. That is really something else.

We as average people will have a thought like that but I have never imagined one working in the government to take it that seriously.
It looks like even those who put their trust on their own currency are having so much doubts now and might also take a new type of investing or keeping it safe rather than just gold.

[barbara44]

The greatest news is that recently it turned out some other big politician (I totally forgot but he was someone like head of SEC or something) was talking about how he likes bitcoin over libra, they were questioning libra and what it will do and how it will do it there and libra people were defending themselves, dude just plainly said he would prefer bitcoin over libra.

Now, you may think thats normal because you are an educated young person compared to these people but the guy I am talking about is probably like 50+ years old at least and is a politician not a finance guru, hence bitcoin being better than libra reached all the way to older people as well which is why it worth a lot to us.

I mean we knew it but if the world knows it and Libra becomes huge nevertheless that means bitcoin will be even bigger.

I guess you are talking about congress man sharam I think who likened the established of bitcoin as being dangerous more than the 9/11 lol. I am seeing so much hatred for this coin that has not been released, and I guess this is why Facebook decided to postpone the lunching of the coin to next year to really see the reaction of people about it and see if it will be a welcome development.

As it is, they can see that they are not welcomes, and I am glad they are beginning to see that bitcoin was never a threat to them, but the biggest threat to them is that of Libra coin which they have to quickly stop before it unleashes financial terror on the economy of different world. The only advantage I can see of Facebook involvement in crypto is just that of the publicity it will create for bitcoin.

[STT]

But for a FED to admit it? Hmmm. That is really something else.

The Federal Reserve have been many things and many people over the years.   Former Fed chairman Alan Greenspan was a gold standard bug prior to taking the chair, during his term he oversaw over 20 years the lowest rates of interest in history and backed loose money and now he has left office he returns to the gold bug stance again.     https://www.youtube.com/watch?v=Cp-ov5T4DbE

Quite incredible, I'd call it hypocrisy but I guess it makes sense to him.  The FED is basically a political position in denial.    Another example of FED years past is the exter triangle which I post below, this acknowledges the range of assets that back an economy and its monetary system.

https://i.imgur.com/wrZBNep.png

On such a scale we might easily place Bitcoin, hence the acceptance now is not so astonishing.    It is money of at least some kind, its accepted by people as such and this is the main qualifier.

Not exactly the Fed themselves but someone connected in that sphere gives a pictorial of various money types present and past.   Again I think its correct to say money is a broad variable.

[HELLOFF]

It seems to me that with such statements you need to be more careful or more accurately format your thoughts or formulate your statements.  For me, gold and Bitcoin have a similarity only in that their number is limited, but otherwise gold and Bitcoin have much more differences than differences.  In addition, civil servants need to be more attentive to their statement.

[Schirer]

Well even if this discussion- gold vs btc is as old as bitcoin, I still like to way in.

BTC is much more like investment asset as is gold than it is a payment method. But gold is much less payment method as bitcoin is.
So bitcoin is gold and is better than physical gold because it is easier to pay with.

[Febo]

What makes btc superior to gold is that you can actually transport large amounts.

I dont think rich people have problems pay the transport. Gold s small enough. Silver is different case and is problematic to transport and store. Bitcoin have other advantages over gold. But gold have some to.

[Maestro75]

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...

We did not get much publicity on that because the press is the major cause of bitcoin fudding, always spreading false news about bitcoin but hiding the positive news. One day, all these negative news about bitcoin will end and we will see the importance of bitcoin and cryptocurrency.

[SquallLeonhart]

It seems to me that with such statements you need to be more careful or more accurately format your thoughts or formulate your statements.  For me, gold and Bitcoin have a similarity only in that their number is limited, but otherwise gold and Bitcoin have much more differences than differences.  In addition, civil servants need to be more attentive to their statement.

The difference between both is clear, some of us only believe that bitcoin can be a better store of value than gold in the long run, and I never knew that gold has a limited supply because they mine gold from time to time, while bitcoin already has a number that can be mined.

That is not even an issue now, I think that the world leader too are already seeing the effectiveness of the system of bitcoin, and the value will over time grow more than that of gold and I think now, bitcoin is even still the most traded now even if the market cap of gold is far more than that of bitcoin, but gradually, attention is being shifted to gold and with time, the market cap of bitcoin may eventually over grow the market cap of that of gold. So we call bitcoin the future digital gold.