Jerome Powell, the Chairman of the Federal Reserve, shared in an exclusive interview with CNBC that Bitcoin is in competition with gold rather than the U.S. dollar.
Powell's Insights on Bitcoin
Powell mentioned that people view Bitcoin as a speculative asset, similar to gold. He emphasized that Bitcoin, like gold, is virtual and digital. Powell pointed out that individuals are not using Bitcoin for transactions or as a store of value due to its high volatility. He clarified that Bitcoin is not a direct rival to the U.S. dollar but competes with gold.
Personal Perspective on Bitcoin vs. U.S. Dollar
As an American residing in the U.S., the author agrees with Powell's stance. Many Bitcoin enthusiasts, including the author, prioritize accumulating Bitcoin as a store of value rather than considering it a competitor to the U.S. dollar. While the author spends Bitcoin occasionally, the primary currency for daily transactions remains the U.S. dollar. The author leverages Bitcoin for long-term savings and values its potential for appreciation.
Preference for Bitcoin as a Store of Value
The author favors storing wealth in Bitcoin over gold, citing Bitcoin's utility and potential for growth. While gold may hold its value against the dollar, Bitcoin consistently outperforms gold in terms of appreciation. The author emphasizes the practicality of Bitcoin over gold due to its acceptance and growth potential.
Bitcoin as a Superior Store of Value
Despite Bitcoin's current market cap being lower than that of gold, the author predicts Bitcoin's continued superiority as a store of value. While Bitcoin may not be widely adopted for daily transactions in the U.S., its properties position it as a digital alternative to gold rather than a replacement for the dollar.
In conclusion, the author maintains that Bitcoin's value proposition as a store of wealth surpasses that of gold, aligning with Powell's perspective on Bitcoin's resemblance to digital gold rather than a direct competitor to the U.S. dollar.
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How To
Investing in gold vs. investing in stocks
It might seem risky to invest in gold as an investment vehicle these days. This is because many people believe that gold investment is no longer profitable. This belief arises because most people believe that the global economy is driving down gold prices. They believe they would lose their money if they invested gold. In reality, however there are still many significant benefits to gold investing. We'll be looking at some of these benefits below.
One of the oldest forms known of currency is gold. There are records of its use going back thousands of years. It was used all around the world as a reserve of value. Even today, countries such as South Africa continue to rely heavily on it as a form of payment for their citizens.
You must first decide how much you are willing and able to pay per gram to decide whether or not gold should be your investment. If you're interested in buying gold bullion, it is crucial that you decide how much per gram. If you don’t know what the current market price is, you can always call a local jewelry store and ask them their opinion.
It's worth noting, however, that while gold prices have fallen recently the cost of producing gold is on the rise. So while the price of gold has declined, production costs haven't changed.
The amount of gold that you are planning to purchase is another important consideration when deciding whether or not gold should be bought. If you plan to buy enough gold to cover your wedding rings then it is probably a good idea to wait before buying any more. However, if you are planning on doing so for long-term investments, then it is worth considering. You can profit if you sell your gold at a higher price than you bought it.
We hope our article has given you a better understanding of gold as an investment tool. Before making any investment decisions, we strongly advise that you thoroughly research all options. Only then can informed decisions be made.
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By: Nikolaus Hoffman
Title: Chairman of the Federal Reserve Says Bitcoin Competes with Gold, Not the U.S. Dollar
Sourced From: bitcoinmagazine.com/markets/fed-chair-jerome-powell-is-correct-bitcoin-is-in-competition-with-gold-not-the-dollar
Published Date: Wed, 04 Dec 2024 21:37:40 GMT
