Recent comments from Fed chairman seem to have further vindicated Bitcoin immense value
To limit the damage from the almost frozen global economy caused by the Coronavirus pandemic, governments, and global central banks have taken extreme actions. In particular, recent comments from the Federal Reserve Chairman Jerome Powell during a recent interview with 60 Minutes emphasized the importance of the digital scarcity hard-coded into the Bitcoin protocol.
Federal Reserve governor Jerome Powell
Bitcoin is now trading within an immense period of global economic instability
The over $ 8 trillion globally that has been deployed to combat the pandemics economic prosper has effectively been the result of so-called “money printing,” leading mass inflation amongst fiat currencies to be imminent.
Powell explained that the central bank has essentially been flooding the markets with money to thwart a full-blown recession.
He said:
“The central bank digitally prints money as needed. They are not out of ammunition by a long shot.”
This ammunition is a significant boost for Bitcoin, however. This comment above all else proves the value of Bitcoin as a deflationary and decentralized currency.
He also added that they would continue supporting the markets once a long-term recovery begins.
“The one thing I can absolutely guarantee is that the Federal Reserve will be doing everything we need to support the people we serve … And that means providing some relief and stability now. It means supporting the recovery when it comes.”
Powell also revealed that the bank could lower interest rates, change its asset-purchase strategy, and issue additional stimulus to small businesses and individuals struggling during the outbreak. But all of this adds to the already growing balance sheet, now approaching $ 7 trillion. Powell addresses the fact that the deficit is skyrocketing, and hopes to deal with that once the recovery is over.
He stated:
“It is true that deficits are going to be big for a couple of years here. And we’ll have to deal with that. The time to deal with that, though, is when we’re through this recovery.”
History shows every 100 years, or so, the reserve currency falls out of power
According to market analyst Frank Giustra, the US dollar is on its final act. It is almost always driven by overspending on wars, overconsumption, excessive debt, and easy credit.
Giustra said:
“The Fed is now the only buyer of US government debt. It is a mathematic certainty that the Fed will never, ever be able to normalize interest rates and will never unwind its bloated balance sheet.”
Along with Giustra’s analysis and Powell’s statement, investors were thrilled with the future of Bitcoin.
Travis Kling, the CIO at Ikigai Asset Management, spoke about this in a recent tweet, adding that Powell is going to do all the leg work for us.
Jay Powell is going to do all the leg work for us.#Bitcoin is a non-sovereign, hardcapped supply, global, immutable, decentralized, digital store of value.
It’s an insurance policy against this. pic.twitter.com/06yh6dcBw6
— Travis Kling (@Travis_Kling) May 18, 2020
Even outspoken Bitcoin critic Peter Schiff noted that Powell’s comments show that fiat currency is virtually worthless.
Jerome Powell just said there is no limit to what the Fed can do. Since all the Fed can actually do is “print” money, Powell believes there is no limit to how much money the Fed can print. That is only true if the Fed is willing to keep printing until the money is worthless!
— Peter Schiff (@PeterSchiff) May 17, 2020
The Federal Reserve continues to increase its participation in the market, this will likely continue to catalyze the growth and adoption of Bitcoin.
As the US dollar is dying and unable to obtain an absolute scarcity like Bitcoin, the fiat is easily devalued after every new Fed print.
Bitcoin, meanwhile, has a lot of things that the US dollar doesn’t have. Bitcoin, for example, is not controlled by a third party – something that certainly no fiat currency has. So policymakers like Powell can’t push off fiscal responsibility for future generations to later deal with.
Bitcoin was born from the last major recession as a means to prevent future economic suffering at the hands of governments and bankers like Powell.
Read more:
- Market Wrap: Bitcoin Continues Consolidating As Bulls Vie To Break $10,000 Resistance
- American Writer Ben Mezrich Pushes Bitcoin Into The Mainstream With Another ‘Billions’ Episode