- Almost no one uses Bitcoin for payments, it’s really a store of value – Jerome Powell
- Bitcoin virus is spreading, ten years hence, this will be routine
The Validation Of The Highest Order
While answering questions before the Banking Senate Committee on Thursday, Jerome Powell was asked if a cryptocurrency system became prevalent throughout the globe, would that diminish or somehow remove the need for a reserve currency.
According to Powell, it is possible but so far it’s not seen because cryptocurrencies haven’t seen widespread adoption.
He went on to say that Bitcoin is rather a store of value just like gold, that has a market cap of over $7 trillion in comparison to Bitcoin’s $208 billion currently.
“Almost no one uses Bitcoin for payments. They use it more as an alternative to gold, really it’s a store of value, it’s a speculative store of value, like gold.”
The #Bitcoin narrative as ‘Store of Value’ got a huge boost from Fed Chair Jerome Powell today
– ‘Really, its a store of value’ Jerome Powell
— Thomas Lee (@fundstrat) July 11, 2019
A Historic Day For Bitcoin
Bitcoin has been, in fact, showing the features of a store of value. In countries like Venezuela, Argentina, Zimbabwe, and Turkey among others that are ridden by currency and geopolitical crisis, bitcoin has been thriving.
Even during the US and China trade war, Chinese people tuned to Bitcoin after their own currency took a hit and authorities imposed capital control measures.
“People have been talking about this removing a reserve currency since cryptocurrencies emerged, and we haven’t seen it, but that’s not to say we won’t see it,” added Powell. “But if we do see it we may return to an era in the United States where we saw many different currencies in the national banking era.”
In the future, we might see Bitcoin gaining the reserve currency status as many pro-Bitcoin people speculate.
Powell’s remarks came before the US President Donald Trump slammed Bitcoin and cryptocurrencies for being volatile and based on thin air. He said, they are not money and are used for illegal activities.
However, Trump’s attack on Bitcoin only received a positive response from the crypto community.
— Alex Krüger (@krugermacro) July 12, 2019
The Bitcoin virus is spreading.
As Balaji S. Srinivasan, Coinbase CTO puts it, “The tone almost doesn’t matter. Ten years hence, this will be routine. Every nation state may have to hold crypto.”