In a testimony before the Senate Banking Committee on Facebook’s Libra cryptocurrency, the Chairman of the Federal Reserve Jerome Powell suggested that in the future it is quite possible that U.S. will see a return to the usage of multiple currencies.
The opinion is expressed in the context of prospects offered by cryptocurrencies. This means that even Fed realizes the revolutionary potential carries by the burgeoning world of cryptos. But when it comes to the major crypto market leader bitcoin, here’s what Jerome had to say:
Almost no one uses bitcoin for payments, they use it more as an alternative to gold…It’s a speculative store of value.
Instead of getting openly rejected, bitcoin is now being compared to gold which is a testimony to itself that bitcoin can challenge gold’s standard in the future. Is the bitcoin revolution happening?
Although these might just seem observatory remarks from a person but in bitcoin’s perspective, this is a huge step forward. The banking world has snubbed the nascent world of bitcoin and cryptocurrencies multiple times, terming it as uncertain.
Bitcoin poises itself against the debt and inflation based fiat system. Although some traditional financial gurus like Warren Buffet dismiss the asset completely, the remarks coming from Fed’s chairman regarding bitcoin being an alternative to gold, shows how far bitcoin has reached in terms of acceptance in the banking world.
Some people also took this opportunity to spread the narrative of dropping gold and buying bitcoin on Twitter.
. Fed Chair says Bitcoin is a Store of Value, and will never go back to gold standard- he is literally saying DROPGOLD- he should be in next DROPGOLD campaign commercial pic.twitter.com/U3Bt7RN4O6
— Simon (@Simon23105395) July 11, 2019
Bitcoin is often termed as the “digital gold” in the crypto space. Since there are hardly any opportunities on the ground to use the asset as a source of making payments, using it as a store of value makes more sense. Besides, erratic spikes in price also make it one of the most attractive assets to store or HODL.
It is often termed by its proponents that as legislative and technological advancements are made, bitcoin will take over the physical gold standard and will become the preferable digital gold. This hasn’t happened yet, but the progress that has been made in the past decade by the asset shows it clearly has the capacity to do so.
Remarks made by influential people in the traditional financial world such as the Chairman of Fed only consolidates bitcoin’s position in this regard.
The founder of Adamant Capital, Tuur Demeester, previously talked to BlockPublisher and stated;
“As the case with gold, part of the global population has also accepted bitcoin as the new digital gold, the new standard to weigh in a financial value against. The population is keen enough to reflect the crypto acceptance in a way that they judge a business, venture or an investment from the revenue or the straight cash which can be returned as pure bitcoin assets. We are on the verge to jump into the era of the digital financial systems with quite a significant gait.”
Venezuela’s request to withdraw its own gold of worth $1.2 billion from the Bank of England getting denied is the reason we should turn to bitcoin and the crypto system of financial transaction. This is another down for the Bankers and the banking system not letting the individuals to access their wealth. – Anthony Pompliano
All in all, the remarks by Fed’s chairman have put bitcoin in limelight once again. Although it a purely speculation-based asset, it has been gaining serious adoption and acceptance across the globe. Its role of being a global reserve currency or being the digital gold is not clearly defined yet, but one thing is for certain, the digital asset is slowly but surely establishing its authority in the financial world, one thought leader and influencer at a time and Federal Reserve Chairman’s comparison is a win for bitcoin.
As stated by Sukhi Jutla, the Founder and Chief Operating Officer of MarketOrders, while talking to BlockPublisher;
Bitcoin is still going strong after a decade and has proven itself to be a real and worthwhile use case. I believe it does have the potential to become digital gold.