Jerome Powell: Bitcoin & Gold Are Not in Competition With the Dollar

[searcher]

Jerome Powell: Bitcoin & Gold Are Not in Competition With the Dollar​

During a recent interview, Federal Reserve Chairman Jerome Powell said Bitcoin is “just like” gold and is not competing with the U.S. dollar.

Not long after his comments, Bitcoin surged to over $100,000.

During the New York Times DealBook Summit on Wednesday (Dec. 5), an interviewer asked Powell if he thought the recent surge in the price of Bitcoin represented a loss of faith in the U.S. dollar and the Federal Reserve system more generally. Powell answered, “I don’t think that’s how people think about it.”

More:

https://www.moneymetals.com/news/2024/12/05/jerome-powell-bitcoin-and-gold-are-the-same-and-not-in-competition-with-the-dollar-003664?msockid=1ccf0e09897864eb0cbf1db988ba65b2

 

[searcher]

Let's see what Mario thinks. Nothing to see, can listen in one tab, play around the forum in a different tab. 50 mins long, may want to listen in parts. As usual, take it fwiw and dyodd. Around the 36 min mark Mario talks about Hawk Tuah girl and her coin. Made me laugh.

Powell Says Gold and Bitcoin Are not Stores of Value Nor Challenges to the Dollar.​

Dec 6, 2024 #federalreserve #currency #money


50:47

 

[pmbug]

Powell is right that Bitcoin is not in competition with the dollar as an everyday transactional currency. It never will be either unless there are fundamental changes to the network. It's transaction throughput is too low to be a practical competitor.

Powell is right that Bitcoin is establishing itself as a store of value asset class. It's still volatile and rough around the edges, but it's undeniable that institutional adoption is growing.

Powell is hilariously wrong in claiming that Bitcoin is "just like gold".

The Seventh Characteristic of Money

Jan 4, 2024

This new learning amazes me, Sir Bedevere. Explain again how sheep's bladders may be employed to prevent earthquakes.

The Six Characteristics of Money​

We are roughly a century into the grand experiment with a central bank fiat monetary world order (half a century on a pure fiat system). For many people, pure fiat money is all that they have ever known. The lessons of history with respect to money have been ignored, but not forgotten.

Over thousands of years of civilization, people have used many different mediums for money. The accumulated wisdom of those...

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The most disingenuous part of Powell's comments is that gold is a "speculative value" asset.

Post in thread 'Tradition!'

Dec 4, 2024

Federal Reserver Chair Jerome Powell at The New York Times DealBook Summit on Dec. 4.

While cryptocurrency fans like to float Bitcoin as a possible replacement for the U.S. dollar, Federal Reserve Chair Jerome Powell doesn’t quite see it that way.

Speaking at The New York Times (NYT) DealBook Summit in Manhattan Wednesday, the central banker said Bitcoin is a speculative asset like gold, rather than something comparable to a currency.

“It’s just like gold only it’s virtual,” Powell said. “People are not using it as a form of payment, or as a store of value. It’s highly volatile...

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