Bitcoin is a rival to gold, bank president says By BTC Peers

February 16, 2021 0 By boss

[ad_1]

Bitcoin is a rival to gold, bank president says

The president of the Federal Reserve Bank of St. Louis, James Bullard, has named “a rival to gold” and not the U.S. dollar.

Speaking to CNBC’s Squawk Box on Tuesday, Bullard rejected the idea that Bitcoin was competing with the U.S. dollar or any other fiat currency. According to him, it is “very hard” for Bitcoin to perform the role of fiat currencies. Bullard said:

I’d categorize it as a rival to gold, and it’s a good way to think about it… You don’t want to go with a non-uniform currency when you walk into a Starbucks (NASDAQ:) and maybe you’ll pay with , maybe you’ll pay with , maybe you’ll pay with Bitcoin, maybe you’ll pay with a dollar. That isn’t how we do this.

Although the dollar still maintains its reign as the world’s reserve currency, Bullard noted that investors were flocking to other traditional fiat safe havens such as the Japanese yen. Furthermore, whilst there have been predictions that the United States economy would bounce back after the pandemic, Bullard asserted that a recovery is still far from sight.

He signaled that the central bank has no intentions of tampering with asset purchases. This may further fuel the crypto Bull Run.

Judging by comments from other industry participants, Bullard is only stating the obvious. In December 2020, JPMorgan Chase (NYSE:) remarked that Bitcoin would become the new gold. MicroStrategy’s CEO had also at one point commented that gold’s ROI was not as compelling as Bitcoins’.

Continue reading on BTC Peers

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



[ad_2]

Source link