[ad_1]
© Reuters.
Investing.com – Fed Chairman Jerome Powell sees an alternative to gold, not dollars.
Fed Chairman Jerome Powell addresses the markets today, and Powell is reported to have said Bitcoin will be an alternative to gold, not the dollar. This means that the Fed believes that Bitcoin has become a safe haven, according to the statements.
Bitcoin is now trading at $ 57,000 per currency. It continues to trade below $ 1,745 an ounce which is the decisive level in the push and pull between the bulls and the bears right now. It appears that investment banks have started to announce some calm and some stability in the price of gold, with Deutsche Bank (DE 🙂 forecasting the price to hit $ 1,850 an ounce in March 2022, down by ‘about 15% compared to previous expectations.
Although the reasons for the rise in gold are still in place, including deficits, debt and inflation.
As institutional demand for Bitcoin increases, and large investors now see it as a tool to protect against falling values and against inflation, what the Fed promises is only temporary inflation that will help. economy and will not harm it.
MicroStrategy is the first company to enter the Bitcoin market and has begun the institutional adoption of digital currency, and its CEO, Michael Saylor, says Bitcoin is the answer to recent developments in the markets.
MicroStrategy bought the equivalent of $ 15 million worth of Bitcoin last week, increasing the company’s holdings from Bitcoin to 91,064 Bitcoin.
The Fed chief said Bitcoin lacks the key elements that make it a currency. Based on this, Powell believes that digital currency is like gold, not the dollar.
“Crypto-assets are very volatile – see bitcoin – so they cannot be a store of value. They are not backed by anything. They are purely speculative assets,” added Jerome Powell in a conference sponsored by the Bank for International Settlements.
In essence, it replaces gold. According to Powell.
He added that stablecoins outperform digital assets, but their credibility stems from sovereign currency hedging.
Powell added that stable digital currencies can play a role in putting the right regulatory restrictions in place.
The Fed chief spoke again about the digital dollar and said it would play a productive role in stimulating the economy because it could be sent directly to Americans, rather than backing checks.
But Powell stressed that progress in this process will be slow.
Fusion Media or anyone involved with Fusion Media will not accept any responsibility for loss or damage resulting from reliance on any information, including data, quotes, graphics and buy / sell signals contained in this website. Be fully informed of the risks and costs associated with trading in the financial markets, it is one of the riskiest forms of investing possible.
[ad_2]
Source link
