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Fed Chair Powell said WHAT?

Leave it to the head of the printing press to talk about value… Federal Reserve Chairman Jerome Powell testified before the Senate Banking committee on July 11. In a statement that will make gold bugs crazy and crypto enthusiasts cheer, Powell compared Bitcoin to gold. He also shared what he thinks may be the future of U.S. currencies...
Daniel Creech
By Daniel Creech Research Analyst

In a shocking statement to the Senate Banking Committee, Fed chair Jerome Powell compares Bitcoin to gold…

Leave it to the head of the printing press to talk about value. 

Federal Reserve Chairman Jerome Powell testified before the Senate Banking committee on July 11. In a statement that will make gold bugs crazy and crypto enthusiasts cheer, Powell explained how individuals are using Bitcoin…

“Almost no one uses bitcoin for payments; they use it more as an alternative to gold. It’s a speculative store of value.”

He also said he could foresee a time when multiple currencies are once again used in the U.S.  

The banking industry hasn’t seen much change in its business model in over 100 years. But technology breakthroughs and advancements have led to the opportunity for juggernauts like Facebook to disrupt the banking sector and traditional methods of payment. 

On Facebook’s cryptocurrency Libra, Powell cautioned, “The size of Facebook’s network means it could be, essentially, immediately systemically important.”

Coindesk reported Powell’s comments and some banter from the Twitter universe.

There’s plenty of debate out there amongst the diehards about holding only gold or only bitcoin. But don’t get caught up in it. The takeaway for individual investors is simple: The Federal Reserve Chairman thinks the future could be a mix of fiat and cryptocurrencies. 

Investors who own gold or gold investments for a rainy day would be wise to have exposure to cryptocurrencies too. After all, both can play the ultimate trump card… the government can’t print either one of them.

Daniel Creech
Daniel Creech is a Curzio Research analyst with over a decade of experience. He writes on macro trends, large- and small-cap stocks, and digital securities. He’s a regular contributor to Token Tracker, Curzio Research Advisory, and The Dollar Stock Club.
Daniel Creech
Daniel Creech is a Curzio Research analyst with over a decade of experience. He writes on macro trends, large- and small-cap stocks, and digital securities. He’s a regular contributor to Token Tracker, Curzio Research Advisory, and The Dollar Stock Club.
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