Bitcoin Eyes Price Rally as Fed Announces Pseudo-QE

Bitcoin is about to become a hot asset as the US central bank goes ahead with its pseudo-quantitative easing program, believes a few bigwigs.
Travis Kling, the chief investment officer at California-based Ikigai Asset Management, called bitcoin “an insurance policy” against Jerome Powell’s decision to resume Treasury purchases. The Federal Reserve chairman on Tuesday confirmed that they would purchase short-term bonds to expand their balance sheets.
Fed’s move, according to Kling, signals a liquidity crunch in the US market, which means the central bank is injecting a fresh supply of dollar-denominated assets to stimulate the US economy. It is an equivalent of quantitative easing (QE).
“Welcome to QE4,” tweeted Kling.

"I want to emphasize that growth of our balance sheet for reserve management purposes should in no way be confused with the large-scale asset purchase programs."-Jay Powell, today
Bitcoin is an insurance policy against monetary & fiscal policy irresponsibility.
Welcome to QE4.
— Travis Kling (@Travis_Kling) October 8, 2019

Fed: Everything is Fine
Powell refused to call the Treasury Purchase a QE program, stating that it is nowhere the same as the crisis-era program launched after the 2008 financial crisis.
“I want to emphasize that growth of our balance sheet for reserve management purposes should in no way be confused with the large-scale asset purchase programs that we deployed after the financial crisis,” he told the National Association of Business Economists.
The weight of the Fed’s decision is going to fall on an oversupplied US dollar – at least in the short-term. Moreover, another factor that could further weaken the greenback is Powell’s inclination towards another rate cut.
The Fed chief coupled his Treasury-buying announcement with another inflationary news. He said the Fed could cut benchmark rates by 25 bps at the next Federal Open Market Committee meeting. That shows that Powell is adding more insurance against market uncertainties caused by, as he said, “trade, Brexit, and other issues.”
Meanwhile, staunch bitcoin skeptic and gold bull Peter Schiff said that Fed’s latest decisions proved that the US economy is in bad shape. The Euro Pacific Capital CEO tweeted:

Within a few months it's likely that the Fed's balance sheet will exceed the $4.5 trillion peak it hit prior to the Fed doing QT. Sometime in 2020 the Fed's balance sheet will grow beyond $5 trillion, and will likely keep growing indefinitely. But don't worry, it's not QE!
— Peter Schiff (@PeterSchiff) October 8, 2019

“If it looks like a duck, walks like a duck, and quacks like a duck, it’s a duck. No matter what Powell claims, the Fed is doing QE, as I predicted it would. The goal is to suppress interest rates to sustain debt and asset bubbles. The only difference is this time in won’t work!”
Unlike Kling, Schiff thinks Gold would beat bitcoin in terms of gains against a weaker dollar.

China’s Most Recent Gold-Buying Spree Tops 100 Tons @schiffgold https://t.co/NfehkgGAR2
— Peter Schiff (@PeterSchiff) October 8, 2019

A “Rocket Fuel” Bitcoin Rally
Sweden-based Youtuber Ivan on Tech sided with Kling on his upside prediction for bitcoin. He said the news of the Fed’s bond purchasing program could “rocket fuel” the cryptocurrency.

FED: starts QEAlso FED: This is definitely NOT QE
NEVER BELIEVE ANYTHING UNTIL IT IS OFFICIALLY DENIED
This is Bitcoin Rocket Fuel https://t.co/6fmJ9O03v4
— Ivan on Tech (@IvanOnTech) October 9, 2019

Meanwhile, Priya Misra of TD Securities stressed that Powell’s program appears a lot like QE, but it is not one.
“This was the only sustainable and permanent solution,” she stated.
The post Bitcoin Eyes Price Rally as Fed Announces Pseudo-QE appeared first on NewsBTC.
Source: New feedNewsBTC.com

Facebook’s Libra could become ‘systematically important very quickly,’ claims Fed Chair Jerome Powell

2019 has been an incredibly important year for digital currencies. The collective cryptocurrency market broke away from the bearish winter and digital assets have again started to gain attention from various financial institutions and personalities. In fact, the President of the United States also called out Bitcoin and Facebook’s Libra at one point of time, […]
The post Facebook’s Libra could become ‘systematically important very quickly,’ claims Fed Chair Jerome Powell appeared first on AMBCrypto.
Source: AMB Crypto

Bitcoin Rises Minutes After China Announces Additional Tariffs on US

Bitcoin began an impressive price surge minutes after China announced that it would slap additional tariffs on US goods.
Beijing said late Friday that it would increase taxes on $70 billion worth of US imports of between 5 and 10 percent. That progressed its already worsening trade dispute with Washington which last week had announced a similar tariff on $300 billion of Chinese imports.
Bitcoin spikes after China announced additional tariffs on US goods | Image credits: TradingView.com
The BTC/USD instrument spiked by $355, or 3.52 percent, to establish a local high towards $10,449.52 on San Francisco-based Coinbase exchange. The move uphill appeared shortly after China’s announcement, validating bitcoin’s growing correlation with the global trade dispute. Investors/speculators evidently went bullish on the cryptocurrency’s near-term price prospects, a move similar to many ever since the US-China trade war picked momentum.
Renminbi Down
Sentiments towards the Chinese Renminbi dwindled on Friday, with analyst predicting the national currency would fall further due to the tariff announcement. As of 10:00 UTC, one dollar bought 7.079 yuan, the unit of the renminbi. Earlier, the price had dropped towards 7,099, a level never-touched-before since the financial crisis 11 years ago.

Currencies across the globe crashing to all-time, or multi-decade lows, and no one talking about. Gee, I wonder if #Bitcoin will succeed. See the Yuan, Rupee, Peso (Mexican and Argentine), Euro, Rand, Brazilian Real, etc.
— Andy Hoffman (CryptoGoldCentral.com) (@Andy_Hoffman_CG) August 22, 2019

The People’s Bank of China allowed the renminbi to go down below 7 a dollar in early August, sparking a further escalation in their dispute with the US. The move prompted the White House to call China a “currency manipulator.”
Meanwhile, bitcoin encashed the most as two superpowers remained engaged in a tit-for-tat strategy. The cryptocurrency surged 5 percent on the day PBoC forced the renminbi lower. It is now eyeing to repeat the price action as investors look for safe-haven assets against the impending economic meltdown.

China raises tariffs on US₿ Bitcoin Goes upUS raises tariffs on China₿ Bitcoin Goes up China raises tariffs on US₿ Bitcoin Goes upUS raises tariffs on China₿ Bitcoin Goes up
— Jacob Canfield (@JacobCanfield) August 23, 2019

Fed Easing Priced In
The bitcoin price rise came as traders also awaited further pointers from the US Federal Reserve Chairman Jerome Powell, as he spoke at annual central bankers meeting at Jackson Hole, Wyoming, today. He gave no new indication about cutting interest rate any further, as had demanded by Trump in his critical tweets on the Fed.
“We will act as appropriate to sustain the expansion,” Powell said.
A rate cut in late July had assisted bitcoin in growing its market capitalization. Speculators believe cutting interest rate further would increase the cash-liquidity among investors, which would then be able to route more capital into the bitcoin market.
“Economy slowing down only means one thing — cutting rates and printing money,” said Anthony Pompliano of Morgan Creek Digital Assets. “They don’t realize that they’re giving Bitcoin the rocket fuel it was built to consume. Long Bitcoin, Short the Bankers.”
The post Bitcoin Rises Minutes After China Announces Additional Tariffs on US appeared first on NewsBTC.
Source: New feedNewsBTC.com

OKEx Executive May Make Appearance at Tron Buffett ‘Power Lunch’

Coinspeaker
OKEx Executive May Make Appearance at Tron Buffett ‘Power Lunch’
Now, with the lunch date set for Thursday, July 25, speculation is rife that Sun will invite a selection of dignitaries from the world of cryptocurrency and blockchain to meet Buffett. Among those likely expected at the lunch is OKEx executive.
OKEx Executive May Make Appearance at Tron Buffett ‘Power Lunch’

Continue reading at Coinspeaker
Source: CoinSpeaker

U.S. Treasury Secretary: Bitcoin, Libra Pose National Security Threat

Coinspeaker
U.S. Treasury Secretary: Bitcoin, Libra Pose National Security Threat
The Treasury Department has concerns that Libra, as well as Bitcoin, could be misused by terrorist financiers and money launders, to carry out illicit activities ranging from cybercrime to tax evasion, extortion, and ransomware.
U.S. Treasury Secretary: Bitcoin, Libra Pose National Security Threat

Continue reading at Coinspeaker
Source: CoinSpeaker

Bitcoin’s Price May Rise after Congress Hearings on Facebook’s Libra Сryptocurrency

Coinspeaker
Bitcoin’s Price May Rise after Congress Hearings on Facebook’s Libra Сryptocurrency
Investors hold their breath in anticipation of Congress Hearing on Facebook’s Libra set up for July 16-17. What’s in store for Bitcoin?
Bitcoin’s Price May Rise after Congress Hearings on Facebook’s Libra Сryptocurrency

Continue reading at Coinspeaker
Source: CoinSpeaker

Boom and Bust: Is the Chair of the Federal Reserve more influential than Trump on Bitcoin’s price?

Who is the real Commander-in-Chief? In the cryptocurrency market, it’s not Donald J. Trump. TRUMP TRIPS POTUS finally tweeted about Bitcoin, and it had absolutely no effect. Considering the daily Twitter-tirade that Donald Trump spews, which covers everything from an all-out war with Iran to Robert Pattinson, a tweet about the $320 billion market was […]
The post Boom and Bust: Is the Chair of the Federal Reserve more influential than Trump on Bitcoin’s price? appeared first on AMBCrypto.
Source: AMB Crypto

‘Bitcoin is Becoming Mainstream’, Judging from Trump and Fed Chairman’s Views

The President of the United States spoke about Bitcoin [BTC] and cryptocurrencies for the first time via a twitter thread. While any trader would anticipate a big move in Bitcoin, his unbiased views hardly caused any change in Bitcoin price. Furthermore, it has turned the belief of a Bitcoin supported stronger than ever.
Asiff Hirji, the Founder and COO of one of the largest US-based Exchange, Coinbase, noted that Trump’s tweet is proof that Facebook’s entry with Libra is good for the crypto community. However, he also acknowledged the need for development and growth in the space, he tweeted,
“Crypto will (eventually) create an open financial system, crash the costs of financial transactions and bring financial inclusion to billions. It is also going to be a contender for the reserve currency of the future global economy But crypto needs to deliver a lot more utility before it is a true order magnitude improvement.”
Crypto-Trader and Analyst, Dovey Wan also perceived the tweets from Trump as a bullish signal for Bitcoin. However, she said that it raises significant concerns on the launch of Libra, she said,
BULLISH for Bitcoin and bearish for libra.
The people’s currency won’t seek bank charter and can’t be banned
Gold Buff, Peter Schiff Agrees to Disagree
Peter Schiff, the Chairman of Euro Specific Capital, has been an eternal basher of Bitcoin. He has been and remains to be a strong supporter of Gold.
Interestingly enough, Peter Schiff also replied to Trumps’ tweets in support and agreement. However, there was also a hint of disagreement with Trump about the nature of the arguments. While Trump dislikes the unregulated nature of Bitcoin, he actually appreciates the decentralization. He said,
 I’m not a fan of Bitcoin either, but not because it’s unregulated. That is actually one aspect that I like… It’s a confidence game, and those who put their faith in it have been conned.
However, while he still believes Bitcoin has “no real value”, his recent engagement with crypto-twitter might suggest that he is coming around on it. Schiff has agreed to debate on the propositions for Gold and Bitcoin with Bitcoin bull, Anthony Pompliano soon when we will hear his views.
US Fed Chairman on Bitcoin
Recently, Fed’s Chairman, Jerome Powell also spoke about Libra and Bitcoin at a congressional meeting. His comments against Libra had a negative impact on the cryptocurrency markets. Nevertheless, there was also a silver lining to it. In in arguments, Powell spoke about Bitcoin’s utility as “digital gold.”
Moreover, the committee also addressed the questions regarding the future of the banking and payments industry “IF” cryptocurrencies become prevalent. To this Chairman Powell Said,
“People have been talking about this since cryptocurrencies emerged. But we haven’t seen it [any threat to the Reserve Currency], that is not to say we won’t see it. And if we do it, you could see a return to an era in the United States where we had many different currencies – National Banking era”
Meltem Demirors, the Chief Strategy Officer at Coinshares, was very bullish on this comparison between Gold and Bitcoin, pointed out by Powell. According to her, this is an iconic moment when the Feds are finally turning to cryptocurrencies. She tweeted,
nuanced response from Powell is intelligent, informed, and balanced. after five painful years, slowly but surely, bitcoin is becoming mainstream
Do you agree that Bitcoin is becoming mainstream? Please share your views with us. 
The post ‘Bitcoin is Becoming Mainstream’, Judging from Trump and Fed Chairman’s Views appeared first on Coingape.
Source: CoinGape

Did the US Fed Chairman’s Comments on Libra Cause the Drop in Bitcoin? – Expert Opinion

The following article is the rework of the thoughts put forward by Mati Greenspan, the Senior Market Analyst at eToro.

Bitcoin’s sudden turn in the wake of a bull run after a swift pullback has probably baffled the crypto-community. While ‘Bitcoin’s volatility’ can be blamed for almost all price movements. However, the trigger, in this case, seems to be the US Federal Reserve increased concerns over Libra.
Whether connected or not, we may never know, but the drop in bitcoin yesterday definitely happened on the heels of the Fed Chair’s comments. The purple circle here shows at around 12: 00 hours UTC is the time when the Fed addressed the Libra situation. What followed was a swift drop. Powell said at the Congressional meeting,
“Libra raises serious concerns regarding privacy, money laundering, consumer protection, financial stability”
BTC Price Analysis
Libra announcement came as a positive piece of news for Bitcoin. The supporters of Bitcoin envisioned increased adaptability of Bitcoin with Libra’s launch. So, the Fed’s call for increased oversight certainly has the potential to delay this from happening.
Moreover, correlation does not mean causation, and my personal feeling is that most crypto traders are not exactly watching the Fed testimony for signals of when to buy and sell bitcoin. However, the timing here is more than enough to raise suspicion.
Bitcoin [BTC] Trading Range
Though yesterday’s volatility was a bit harsh, this is the kind of thing that bitcoin traders should be used to already. After failing to breach a new high, the market began very quickly, testing the lower bounds of the current range.
Bitcoin touched a daily low at $11,163; however, it is back above $11,500 at press time. Bitcoin fell from $13,100 as it failed to break above the yearly highs at $13,8000.
Bitcoin Trading Upper Resistance and Support Range
As we’ve stated before, the upper bound is very clearly defined. A breakout above $13,800 (yellow line) would no doubt spur FOMO. However, the bottom of the range is a bit less clear. Various chartists will no doubt identify several key points within the blue box (between $8000-$11,400) that could be named as support.
No doubt, the big one that many will gravitate to is the psychological round number of $10,000 per coin. The momentum will likely shift to the bearish side. Moreover, the lower the Bitcoin price falls, the longer it will stay down.
Do you think Bitcoin will hold above $10,000? Please share your analysis with us. 
The post Did the US Fed Chairman’s Comments on Libra Cause the Drop in Bitcoin? – Expert Opinion appeared first on Coingape.
Source: CoinGape

Fed’s Chairman Denounces Libra, Predicts Project’s Uncertainty To Surpass Regulatory Demands

Jerome Powell, Chairman of the U.S. Federal Reserve has issued a stern warning to Facebook along the lines of its Libra project, maintaining that developments of the highly controversial cryptocurrency project cannot proceed until the accurate regulatory procedure has been put in place.
In Powell’s words, “serious concerns” are yet to be expressed and must be addressed before developments and implementation procedures.
Facebook seems to be under the limelight recently, particularly as a result of its newly announced cryptocurrency project, Libra. In this global financial services provision, as many as 1.7 billion unbanked people globally are targeted with financial services. This, according to report would enable Whatsapp and Facebook users to send and receive money on the respective platforms.
As many come to believe in this inbound “new dawn”, several governments and financial agencies move to put Libra under strict regulations, a result of which Facebook had to halt the development and implementation of Libra initially planned to launch in 2020.
The announcement of Libra had initially spelled good luck for bitcoin. This news came at the time when bitcoin was just recovering from the 2018 bear markets. With excitements of Libra in the air, bitcoin caught a bullish trend and moved up quite rapidly to record a high all-time of 15 months at $13,100 around early June. As bitcoin tried to maintain this those good day, news of Libra’s uncertain future caused a setback and bitcoin moved down the charts once again, loosing around 10% within the last 24 hours.
Powell commented that the proposed Bitcoin rival, Libra being developed by Facebook posed some serious financial problems than anyone can imagine as of now. According to him,
“Libra raises many serious concerns regarding privacy, money laundering, consumer protection, and financial stability,” Powell warned, added he doesn’t think “the project can go forward” until these are addressed.
Adding that Libra doesn’t exactly fit into the current financial system and policies, Powell also expressed his views on how regulatory procedure Libra has to pass through before implementation.
“It’s something that doesn’t fit neatly or easily within our regulatory scheme but it does have potentially systemic scale,” he said. “It needs a careful look, so I strongly believe we all need to be taking our time with this. The process of addressing these concerns should be a patient and careful one, not a sprint.”
Mark Zuckerberg and his Libra team, according to report are currently preparing to attend a Senate hearing next week and have promised to follow due regulatory process and cooperate with regulators. However, the implementation of Libra in other regions like India and China still remains uncertain.
The post Fed’s Chairman Denounces Libra, Predicts Project’s Uncertainty To Surpass Regulatory Demands appeared first on Coingape.
Source: CoinGape

FED Chairman: Libra Cannot Go Forward!

Coinspeaker
FED Chairman: Libra Cannot Go Forward!
Federal Reserve Chairman Jerome Powell said that Libra raises serious concerns regarding privacy, money laundering, consumer protection, financial stability, adding that the project “cannot go forward” until Facebook’s answers to regulators’ questions.
FED Chairman: Libra Cannot Go Forward!

Continue reading at Coinspeaker
Source: CoinSpeaker

Libra cannot go forward until Facebook addresses serious concerns: Federal Reserve Chair

You’ve been blocked? Less than a month after being formally unveiled, Facebook’s cryptocurrency project has run into its biggest roadblock. Jerome Powell, the Chair of the United States Federal Reserve stated that Libra ‘cannot go forward,’ until serious concerns regarding its working are addressed by the social media giant. Powell, speaking before the US House […]
The post Libra cannot go forward until Facebook addresses serious concerns: Federal Reserve Chair appeared first on AMBCrypto.
Source: AMB Crypto

Bitcoin [BTC] Tipping Point Analysis and The ‘God Bad News’ in the US: Expert Opinion

The following article is the rework of the thoughts put forward by Mati Greenspan, the Senior Market Analyst at eToro.
The announcement made by Germany’s largest bank on 7th July 2019, speaks for more than just one banking institution.  Reportedly, Deutsche Banks’ investment bank has been reeling under a lot of pressure due to the low rates. Around 18,000 employees are marked for the culling that will take place over the next 2.5 years.
In the past decade, the interest rate set by global central banks has been effectively near or below zero when accounted for the inflation. Hence, imminently it has affected the global trading desks and hedge fund managers. When even a 2% annual return starts to look incredibly attractive, it’s clear that there’s very little meat on the bones.
The Good Bad News
Nevertheless, the Non-Farm Payroll (NFP) is very high compared to the Fed’s estimation; the US market is entering a paradoxical situation. To what economists are hailing as good bad news, has created a very tight position for the US Federal Reserve Chairman, Jerome Powell.
Furthermore, the Turkish President has sacked the head of the Turkish Central Bank as the sovereign currency Lira continues to decline.
There is a bigger evil at play here. The old financial system is dying a slow death. Let’s hope the new one is brighter.
Bitcoin Reaches Tipping Point
The crypto market continues to consolidate the massive gains that have been accumulated so far this year; it seems like the pattern is coming to a point. As reported on CoinGape, analysts see massive volatility in Bitcoin price in the near future.
Bitcoin Price Analysis | Source: eToro
Many traders will take a breakout of this classic chart formation as an indicator for the next direction. Moreover, while the buying interest in Bitcoin is on the rise, traders have also been trying to catch the bottom since the beginning of the year. However, Bitcoin’s rise has followed only one direction for the most parts of Q2 in 2019.
The trading volume on Bitcoin is also increasing on the peer-to-peer platform, Local Bitcoins. It now spiked to its highest levels since November.
What are some of the significant reformations you expect in the new financial system? Please share your views with us. 
The post Bitcoin [BTC] Tipping Point Analysis and The ‘God Bad News’ in the US: Expert Opinion appeared first on Coingape.
Source: CoinGape

Donald Trump and Fed Chairman Distrust is Bullish for Bitcoin: Billionaire Investor

Bitcoin is going to benefit from the growing distrust between the US President Donald Trump and Federal Reserve Chairman Jerome Powell, believes Mr. Michael Novogratz of Galaxy Digital, LLC.
The billionaire founder said on Wednesday that he is becoming “more bullish” on bitcoin after President Trump reportedly threatened to demote Mr. Powell if he decides against lowering interest rates. The Federal Reserve is set to announce its take on the said matter today at 1400 Eastern Time upon concluding a two-day meeting.

Makes me more bullish $BTC https://t.co/oePdtMT1GD
— Michael Novogratz (@novogratz) June 18, 2019

Bitcoin against Rate Cuts
Economists believe the Fed is not likely to cut interest rate in June despite May’s weak job data and softer consumer price inflation. But, the central bank’s likelihood of decreasing the rates after July 30-31 meeting is higher.
Meanwhile, with an 80 percent approval of a rate cut by traders, the sentiment in the US stock market has turned bullish for the near-term. The June session so far has witnessed the S&P 500 Index, Dow Jones Industrial Average, and Nasdaq Composite posting more than 6 percent profits each through Tuesday’s close.
On the other hand, bitcoin’s month-to-date gains are lower than that of the US benchmark markets — at 3.69 percent by Tuesday’s close. The cryptocurrency’s uptrend went silent on Tuesday after the announcement of Facebook’s token Libra. Nevertheless, bitcoin’s broader bias remains bullish owing to market catalysts like the Hong Kong protests, the US-China trade war, and news related to its potential adoption by mainstream institutions (Fidelity, TD Ameritrade, etc.).
Bitcoin Price has Surged More than 150% in 2019 | Image Credits: TradingView.com
Hand in Hand
The two diverse markets now meet at the crossroad constructed by the Federal Reserve. Investors who have both the US stocks and bitcoin in their portfolios are looking at rate cuts as a hedge against a potential economic slowdown. According to Barclays, the US benchmark markets could witness a surge of as much as 21 percent following the next rate cut. The same theory stands true for bitcoin, which could see an increase in buying sentiment if US dollar borrowing becomes cheaper.
But the interim sentiment holds if only Mr. Powell decides to cut interest rates. An opposite scenario, meanwhile, could hit the bitcoin market in the wrong way — at least according to Robert Leshner, the founder of Compound Finances.
“We’re finally starting to enter an environment of rising interest rates which crypto has never seen before and it’s going to be potentially challenging to the price of a lot of crypto assets just like it will be for a lot of assets in general, including equities.”
Long-Term Sentiment
The following rate cut scenario does not guarantee a soft landing for the US economy, according to Ryan Detrick of LPL Financial.
The senior market strategist noted that the Fed is going to cut interests at a time when a potential recession is looming around. He said the previous two times the Fed slashed the rates were in 2001 and 2017, which eventually cut the stocks cut by half.
“But the reality is if you go back further in time, you can also see explosive rallies after that first cut,” Mr. Detrick said.
Meanwhile, data collected by Barclays shows the S&P 500 records a loss of approx 17 percent when the Fed cuts rates ahead of an impending recession.
Bitcoin’s impressive performance in May against the backdrop of the US-China trade war has proved that investors would likely consider it a hedge under challenging times. US-based Grayscale Investments found plenty of evidence that showed the bitcoin price rising against a string of regional economic tensions, ranging from China’s capital control to the Greece debt crisis. The firm wrote in its report:
“While it is still very early in Bitcoin’s life cycle as an investable asset, we have identified evidence supporting the notion that it can serve as a hedge in a global liquidity crisis, particularly those that result in subsequent currency devaluations.”
That somewhat raises hopes of bitcoin behaving as a perfect hedge for handling a global economic crisis.
No wonder Mr. Novogratz is more bullish on the cryptocurrency.
The post Donald Trump and Fed Chairman Distrust is Bullish for Bitcoin: Billionaire Investor appeared first on NewsBTC.
Source: New feedNewsBTC.com

“Cryptocurrencies are great if you are trying to hide or launder money”, says Federal Reserve Chairman

During a testimony before the House of Federal Service Committee on Wednesday, Jerome Powell, the Chairman of the Federal Reserve, the Central Bank of U.S said that cryptocurrencies are great if you are trying to hide money or launder money.

During the testimony, he was questioned on what he thinks about cryptocurrencies. To which, he replied that cryptocurrencies are not big enough a threat for the financial stability. He said that they have to be conscious that they are being used to hide or launder money.

Powell claims that investors invest based on the assets’ price rise whereas there is no promise behind the product. According to him, cryptocurrency is not a currency as they do not have an intrinsic value. There are issues in terms of investor consumer protection as there is significant investment risk associated with cryptocurrencies.

Moreover, the Federal Reserve is not looking at cryptocurrencies. The Chairman’s main concern is that cryptocurrencies do not have a store of value. The basis of currencies is that it is supposed to be a means of payment and a store of value and cryptocurrencies are not used for payments. Usually, people sell their cryptocurrency and then pay in U.S Dollars and in terms of store value, cryptocurrencies have high volatility.

This is not the first time Jerome Powell has shown his disdain towards cryptocurrencies. Last year, during the testimony as a nominee for the Federal Reserve Chairman before the Senate Banking Committee, Powell was asked about his opinion on cryptocurrency and blockchain technology. He pointed out that Bitcoin’s market value is more than that of 29 out of the 500 S&P Corporations in the US.

During the testimony with the Senate Banking Committee, Jerome Powell said:

“Another bubble that is some four or five times the dotcom bubble of the 90s.”

However, Powell had stated that cryptocurrencies don’t really matter as they are not big enough. He said that cryptocurrencies do not have the volume for it to matter and in the “long long run”, cryptocurrencies of that nature could matter.

Moreover, in the month of January 2018, the Federal Reserve chairman speaks about cryptocurrency and blockchain technology. During his speech in Yale Law School, Powell shows interest in blockchain and Bitcoin’s role in distributed ledger technology. He stated that the DLT, in the long run, would render parts of the banking and payment system obsolete. He also adds that there is a need for standardization and interoperability across various versions of distributed ledger technology and a proper legal structure is required for the regulation of the network.

Joshua Fausset, a Youtuber commented:

“What currency in the history of mankind is any better at hiding illegal activity than the US dollar? What currency has been devalued any greater over time than fiat currencies, such as the US dollar? The establishment is living in their own dream world they don’t want to see end. As long as the public stays asleep, the dream will continue.”

WonderfulInflation, another Redditor replied to a comment which stated that the Feds is working in their best interests and not the peoples:

“Regardless of their intention with crypto, the alternative reality we live in is a lot bleaker. The status quo is failing and people won’t realise it as long as new artilces exist claiming Bitcoin is dead. Even for people that aren’t interested in crypto there is a story there.”

He further adds:

“Why is Bitcoin continually dying (showing how fucking hard it is to kill) while banks are too big to fail? On one hand we have someting we try to abuse and destroy (Bitcoin) and on the other we have a leagacy system that refuses to be accountable and claims to be invincible (too big to fail). I wonder which of the two is doing more harm to the world economy.”

The post “Cryptocurrencies are great if you are trying to hide or launder money”, says Federal Reserve Chairman appeared first on AMBCrypto.

Source: AMB Crypto