Bitcoin Makes Sense in This Environment: Former Fed Governor

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Wed, 01/06/2021 - 13:55
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Yuri Molchan
Prominent financier Kevin Warsh told CNBC that Bitcoin does make sense in the current environment; it is taking funds away from gold and Peter Schiff commented on that
Bitcoin Makes Sense in This Environment: Former Fed Governor
Cover image via www.harrywalker.com
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Kevin Warsh, who was the Federal Reserve governor dealing with the aftermath of the 2008-2009 financial crisis, has told CNBC that Bitcoin does make sense as part of a portfolio under the current economic conditions, including the weakening USD.

He also made some comments about Bitcoin's rivalry with gold.

BTC
Image via Twitter

"If Bitcoin did not exist, gold would be rallying even more now"

Warsh believes that, in the current economic environment with the weakening USD, Bitcoin makes sense in a portfolio. He added that the U.S. is currently seeing the biggest shift in monetary policy since Paul Walkerwho helmed the Fed from 1979 to 1987.

Part of the massive inflows into Bitcoin are now coming from gold, he stated. Besides, he believes that, if it were not for Bitcoin, gold's rally would be much more impressive.

If Bitcoin never existed gold would be rallying even more right now, but I guess if you are under 40 Bitcoin is your new gold.

I'm not surprised, in a period of dollar weakness, that Bitcoin is doing what it's doing.

Last year, gold saw only a 24 percent increase, as opposed to Bitcoin, which rose almost 4x. Still, recently Peter Schiff admitted that Bitcoin has reached the top of the market.

Peter Schiff accuses CNBC of pleasing Grayscale, again

Gold bug and infamous Bitcoin critic Peter Schiff has commented on this conversation, complaining that once in a lifetime CNBC invites "a guest on with something sensible to say" but "wasted" the airtime of Warsh on Bitcoin.

Continuing his previous complaints, Schiff tweeted that CNBC is pumping Bitcoin to please Grayscale, who is the biggest advertiser on the channel with its "Drop Gold" pro-Bitcoin advert campaign.

Finally CNBC had a guest on with something sensible to say, but wasted most of Kevin Warsh's airtime by diverting the conversation to #Bitcoin, something the network's anchors do with every guest to pump their favorite 'asset' and appease their largest advertiser.

Earlier today, Bitcoin soared to a new all-time high, topping the $35,000 mark.

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Max Keiser talks on Bitcoin vs. gold

Prominent Bitcoiner and RT anchor Max Keiser has shared his opinion of gold in a recent tweet. He wrote that, unlike Bitcoin, gold does not have "unimpinged price-discovery."

No real price discovery can take place in this old-school safe haven, he insists, until physical delivery is exercised off the exchanges.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.