Topic: FED Chairmain compares Bitcoin to Gold - page 2. (Read 842 times)

People only see the prices so they are comparing one expensive think to the other even we compare the price of bitcoin in USDs not in satoshis right.

It will only change if we have things to buy in satoshis not in cents.

They could do that but that will bring huge troubles to the economy and it is probably their last resort, to begin with that will devalue the dollar against gold, second there are some conspiracy theories claiming that governments have been selling some of their gold reserves to keep the price of gold in check, if true then it is possible the US government will have to implement something similar to the Gold Reserve Act that made illegal the private possession of gold.

How many times people need to see the same event happening in front of their eyes before they understand it never ends well? It is always the same story, at first the government uses sound money, gold or a currency fully backed by gold, then they begin to print more money and the currency gets devalued, after some time the currency becomes fiat with no backing of any kind, and at the end the currency fails and the government goes back to step one, but there is a difference now and that is that bitcoin exist so you can refuse to play their game and use a form of money they cannot print at will.

That is right, bitcoin will stop becoming subject of speculation soon, and the price will become very stable, at this point is when everyone will really see the benefit of cryptocurrency, people are still judging bitcoin right now because of the way the market makers or the whales manipulate the market and then use it to steal money from the weaker ones through panic sell and fomo.

The time bitcoin will become finite, all these will no longer be there and maybe then, trump will understand that they need to embrace cryptocurrency, especially bitcoin since the dollar is already getting weaker, trump is just trying to so all his possible best to strengthen the fiat which is why is still kind of against crypto, but very soon, I am sure he will understand when fire starts burning his roof.

They are obviously not going to do that. If they really wanted to "kill" Bitcoin, all they would need is going back to the gold standard, however a hard-money based economy creates a different array of problems from those which can be observed now. The most important and selfish one from their perspective, is that they would lose the ability to run an imperialist monopoly in which they are printing the world reserve currency at a desired rate while the rest is forced to accept it, rendering them as the de-facto king of the castle. However this is coming to an eventual end with the expiration of the petrodollar and here is where Bitcoin will play a mayor key.

I think USD can survive if they go back on the old ways of backing it up with something. Countries are missing the point of reserves, if you have reserves but have debt then you are doing it wrong. There is this weird system where everyone has debt, how does everyone have debt, what are these countries doing debiting each other in turn? The reality is that they are actually putting money in reserves and that is the problem.

Now, instead of reserves if they do dollar backed by gold and make that higher and higher and gather as much gold as possible to print more dollars than the rest of the money they have will go to paying their debts. If every nation does that and instead of putting bunch of stocks, bonds, treasury stuff and even foreign currencies in their reserves, they will be capable of actually paying their debts. High reserve while having high debt makes no sense.

BTC has always been compared to gold or something else like that. Even today every one of us compares btc to usd prices. Its almost like the success of this asset is dependent on the prices it'll fetch on the open market against usd. That's a flawed system in my opinion. Until we stop this basic comparison, everything will stay the same and btc will continue to be wrongly compared to gold and other precious metals. Which is wrong, there has never been anything like BTC and it is unique and it will not be comparable.

Its the same as Warren Buffet and Craig Wright on their points on bitcoin, blockchain and cryptocurrency. We all have our own perceptions about digital currency and gold but its always the way how we handle those things that has been said by those big influencers.

Yeah, I heard something about that a while back but don't know how true it is.  If asteroid miners know what's good for them, they'll leave any gold found there alone.  Can you imagine diluting the gold market that way?

Definitely no call for celebration here, and I also pretty much ignore what the Fed has to say about anything.  They're a bunch of really smart morons with too much power. 

The gold vs. bitcoin comparison has been going on longer than I've been a member of this forum, because I recall it being discussed when I was just a lurker--and I'm sure people are going to be comparing the two things well into the future.  Bitcoin hasn't quite proven itself to be a safe store of value, certainly not in the league of precious metals.  There's still way too much volatility and it's just too young.  Maybe if bitcoin starts to become stable it'll become a safe haven asset, but I highly doubt that's going to happen.  It's way too easy to speculate in bitcoin, and its market cap is still too small for the big money players to get involved with.

Trump statement is baseless with the Fed Chairman has some weight it in.


Well it will really have a big impact if we lose the US market, but then again, Americans will likely still invest on bitcoin because they really know the potential of this asset. It's been performing very strong in the last couple of years that smart Americans will still go for it despite their President's statement about it.

Even though he didn’t completely speak in favor of bitcoin, but at least he didn’t speak against it neither unlike the one trump openly declared hatred for bitcoin, it is a good thing that this statement from FED is coming now too from him, being a well-known figure, it will still be able to at least neutralized whatever trump said a little, at least people will still see that there is positive thing to be achieved through bitcoin even though it was not directly supported.

The population of Americans in cryptocurrency market is quite high and we still cannot afford to lose them all because they might panic sell on what trump said, but now that FED chairman still shed little light, it will still make them hold on a little longer. We still need more adoption of crypto now and not losing it at this critical period.

He actually portrayed Bitcoin in it's actual form and how it has matured over the years. Speculation is the main reason most are in cryptocurrency now, the potential for growth, and this is tied to volatility which I would say is gradually on the decline.

Coming from him considering the position he holds fives Bitcoin a higher level of publicity.
With volatility and mass adoption would Bitcoin become more useful as a means of making payment? That we would see in the coming years.

Every guy with at least basic knowledge about economy and finance knows the things that the FED chairman is saying.USD won't survive forever as a reserve currency,because the government debt will explode sooner or later.Bitcoin is a speculation tool,but it won't be a speculation tool forever.The price volatility will go down,if there's mass bitcoin adoption.

It is actually easy to explain his actions, because he is simply saying this to highlight that Bitcoin is more like a speculative asset than a currency. His main mandate is to protect the US Dollar and by deflecting the attention that Bitcoin is getting as a currency. It is all smoke and mirrors and people in his position does not want to openly be aggressive towards emerging technologies, because it would raise suspicion.

This is also why Donald Trump is tweeting about Bitcoin and Libra now, because he is getting advice from people like this. They know Bitcoin is a two edged sword and it will hurt them, if they ignore the possible advantages of this technology.    < Like tracking all transactions on a Blockchain in a Utopian regulated environment.> 

Very different assets physical and virtual.   They are both alternatives to the dollar but thats not a real reason to put them in the same category and not even close to being the same thing.   Crypto when done properly is decentralised where gold has a problem of storage and verifying its condition and quality on every exchange, they are not close in this respect or many others.
   Just a brief examination of the two asset details has them immediately differing to a large extent, how can they really be the same.   They will have separate dynamics always, the dollar decline might have universal price alternations but this just a reflection of that dollar influence.

  I'm sure BTC and gold will always be altering their ratio, I'd not state one over the other but its not going to be fixed or a strong relationship.   For gold keeping a ratio to oil I think it should display a correlation, the reason being the cost of energy in gold mining is very often a large component.   So we immediately have a reason to be comparing gold and oil even though they are quite different commodities there is a relationship ongoing.


The only detail I heard would be the FB coin would be a basket of currencies rather just one.    In some countries with weaker currency it would be useful to have a link to many countries currency worth, diversified to global GDP growth or purchasing power a bit better.   

It's already limited. If we look at how much demand there has been for Bitcoin throughout the years, there is no reason to think of why the coming years should or could be different with more fundamental developments.

Sure, speculation is still the main driver of the price, but with Bitcoin growing larger and maturing more, different use cases will slowly catch up and push back the dominant force within the speculative nature of it.

There is little over 3 million BTC left to be mined. We know when the last satoshi will be mined, and when much sooner the mining rewards will no longer add anything of significance to the total number of coins in circulation.

With gold we don't know anything about its actual circulating supply, and how much there is left to mine. This transparency is extremely bullish for Bitcoin and allows every person to front run the reward cuts.

I dint think Facebook coin can ever pass the test of being recognized as digital gold, if I wanted to save my money, I would rather leave it in the bank than to change it to Facebook stable coin, of what benefit or interest would it yield me. Normally, gold being use as store of value should appreciate from time to time, and this is why many people prefer to hold it for long term investment.

For Facebook coin, this is more of a stable coin that will just be used as utility token, no increase, just stagnant, not even decentralized for us to say it will keep the identity of those who store money on it is covered. The only coin that can pass that test to be called digital gold is still bitcoin, and I think it is gradually getting there fully. Once bitcoin supply becomes very limited, its digital gold nature will be activated.

Bitcoin can not be considered digital gold, even comparing these financial assets with one another is very difficult, because between them there is actually very little in common, and most of the signs are exactly the opposite.
One of the main reasons why Bitcoin cannot be considered digital gold is its high price volatility, which, it seems, will always be in Bitcoin.

I saw plenty of coverage, relatively, considering that Libra's hearing has been taking centre stage. Mostly on negative though, but that's just a demonstration of how an entire discussion that can be objective and contain many sides of any story and yet have 10 different media pieces pick up the parts that suit their agendas the most.

Bitcoin comparison to gold can exist in the same breath as comparison to say, terrorism, and magic internet money. And they actually do =)

Well, from the first get go, we all know that most or rather so many doubts have been put on cryptocurrencies before it was even launched so i'm not suprised by these guys reactions.

As for me, digital gold would be like facebook currencies so I wouldn't think of it as Bitcoin for now because of the market stability, we'll see tho.

TRUMP is just a useless selfish man, he is a business man, and I am sure that he secretly has an investment in bitcoin, which I also believe that he has already sold his investment , and he needed to get another chance to buy at cheaper price again, which  is why he probably created such FUD news.

I guess he succeeded anyway, bitcoin fell below $10000 recently, and I hope it does not get worse than that, anyway, no matter how worst it gets, it would not take much long before it finds its way up gain, and I believe that this chance too was created for some of us to put more money, when I saw the price drop that low some days again, I was actually happy, that  I had to rush to use my credit card to convert some fiat into bitcoin, I am sure many people would be doing this also.