Only fools do not change and Bitcoin (BTC) detractors are no exception to the rule, some of them anyway. Former Governor of the Federal Reserve of the United States and ardent detractor of Bitcoin, Kevin Warsh just returned his jacket on cryptocurrency. Conquered by its prowess, he finally felt that it is reasonable for any investor to find a place in Bitcoin in his portfolio. Like many specialists before him, he also referred to the comparison between the asset and gold, presenting it as the successor to the latter.. More details below.
If you are under 40, Bitcoin is your new gold
Invited to discuss the country’s economic news, Mr. Warsh shared his analyzes with Andrew Ross Sorkin at the plateau of the CNBC during the show Squawk Box. The former Fed governor admitted that Bitcoin finally convinced him after several years of skepticism. Surprised by the latest performance of the asset, he attributed the recent rise in market prices to the weakness of the US dollar. This situation has led him to declare that Bitcoin now had its place in the wallet of any investor.
Comparing the current Bitcoin fever to that experienced by gold years earlier, he took the liberty of offering investment advice to investors. ” If you are under 40, Bitcoin is your new gold »He declared. He then claimed that the value of gold would be much higher now if Bitcoin did not exist. Mr. Warsh also praised changing regulatory attitudes which he said have greatly contributed to the adoption of cryptocurrency.
Bitcoin Growth Spurred By Monetary Policies
Mr. Warsh then returned to the current form of the US dollar by evoking the new monetary policies adopted by the institution for which he was responsible. ” I think Bitcoin makes sense in a portfolio with this environment, where you have the most fundamental monetary policy change since Paul Volcker. It’s a big change we’re seeing under the Powell Fed, rightly or wrongly He said.
In its latest approach to economic stimulus, the Fed has indeed been in favor of any country with its own currency being able to spend much more than it did. If the effects of such a policy are hardly perceived by the public, it would have boosted the crypto markets according to Warsh.
Like this release, 2020 will have been the year of rapprochement between Bitcoin and the leaders of many world-renowned banks. The trend is likely to continue as the status of cryptocurrency grows in financial markets..