There is no doubt Bitcoin has gained popularity in the masses but the recent statement from Jerome Powell, Chairman of the Federal Reserve, has left the Bitcoin community thoroughly pleased. Powell has stated that Bitcoin is largely being utilized as a trusted alternative to the popular metal Gold. His remarks came in the course of his testimony to the Senate Banking Committee on Thursday, 11th July 2019.
Powell also said that he could picture a scenario that marks its return to the era wherein more than one currency is in usage in the US.
The Chairman, during his testimony on the social media giant Facebook’s ambitious digital currency project Libra, opined that it could immediately, essentially, and systematically important given the broad network of the social networking giant.
The initiative saw multiple key concerns being voiced, such as money laundering, financial stability, customer protection, and privacy. However, Powell was noted expressing positive and favorable remarks on other digital currencies.
Powell suggested in his statement that almost nobody utilizes the number one cryptocurrency, Bitcoin, for making payments. It is being used more like an option for gold. He added that Bitcoin is an unpredictable store of value similar to the way gold is.
These comments by the Chairman drew in a series of appreciation and discussion on Twitter from commoners to noted industry experts. While many of them posted celebratory statements, there were also some who slammed it.
How far we've come. The Chairman of the Federal Reserve just compared bitcoin to gold
Folks, it's happeninghttps://t.co/onVmTj4hUk
— Barry Silbert (@barrysilbert) July 11, 2019
“It’s a store of value” — Jerome Powell, Chairman of the Federal Reserve talking to the Senate Banking Committee about Bitcoin
THE VIRUS IS SPREADING ?
— Pomp ? (@APompliano) July 11, 2019
There were also people who took Powell’s statements on Bitcoin as another call to the “drop gold and buy Bitcoin.”
. Fed Chair says Bitcoin is a Store of Value, and will never go back to gold standard- he is literally saying DROPGOLD- he should be in next DROPGOLD campaign commercial pic.twitter.com/U3Bt7RN4O6
— Simon (@Simon23105395) July 11, 2019
Just like Alan Greenspan encouraged homebuyers to take out ARMS at the height of the housing bubble, Jerome Powell effectively just did the same thing with Bitcoin. By claiming it's similar to gold he not only validated Bitcoin, but encouraged people to buy into the bubble.
— Peter Schiff (@PeterSchiff) July 11, 2019