Bitcoin continues to follow its plan for mainstream adoption.

As a sign of the current tension in the financial markets, Jerome Powell is talking a lot. On March 22, 2021, the Fed chairman spoke at a webinar hosted by the Bank of International Settlements (BIS).

On this occasion, Jerome Powell explained first of all what was the vision of the Fed concerning cryptocurrencies.

The Fed prefers to talk about “crypto assets” rather than cryptocurrencies. Indeed, for Jerome Powell and his colleagues at the Fed, cryptocurrencies are not currencies. Their high volatility does not make them usable as such.

As always in such a situation, it is a good form to attack the emblematic leader of this new world. Jerome Powell has therefore attacked Bitcoin as a matter of priority:

“Crypto assets are highly volatile — see Bitcoin — and therefore not really useful as a store of value. They’re not backed by anything. They’re more of an asset for speculation.”

Jerome Powell always attacks Bitcoin with the same outdated clichés.

He explains that Bitcoin is mainly a speculative tool and that it is not backed by anything. Jerome Powell pretends to ignore the subjective conception of value which tells us the following:

“To be valuable, an object must be useful and scarce. An object can also meet the needs of one individual and not another.”

The U.S. dollar has no intrinsic value, just like Bitcoin. It is its utility and the fact that it is backed by the U.S. government, the world’s leading power, that guarantees the value of the U.S. dollar.

It is frequently said that the US dollar is backed by the US military.

For the scarcity of the US dollar, and other fiat currencies, however, we’ll have to pass. Indeed, more than 4,000 billion dollars have been printed out of thin air in a few months by the Fed. This represents more than 20% of the total supply of the U.S. dollar in circulation.

This great monetary inflation that we are experiencing is unfortunately not likely to stop.

On the other hand, Bitcoin is scarce since it is limited to 21 million units. Moreover, Bitcoin is useful to millions of people. Jerome Powell should get out of the comfort of American society and go and see what is happening in emerging countries or under authoritarian regimes.

Bitcoin is already a means of payment in everyday life for those millions of people who have no other alternative. For these people, Bitcoin is already a necessity.

Finally, Bitcoin is backed by the laws of mathematics and its millions of users whose confidence in the Bitcoin revolution is growing block by block. Bitcoin is backed by the people. Obviously, the U.S. dollar, which is imposed as a reserve currency on the rest of the world, cannot claim this title.

The volatility of Bitcoin is inherent in its design. It is a feature, not a bug. Bitcoin users know this and accept it. Those who make this choice have seen that Bitcoin is a true store of value.

Forward-thinking Americans who exchanged their $1,200 stimulus check received in April 2020 for Bitcoin now have $10K in their hands. An increase of over 720% in their wealth in just eleven months.

Jerome Powell refuses to face the truth. At least publicly.

He goes further to say that Bitcoin cannot be considered a competitor to the US dollar. Rather, Jerome Powell sees Bitcoin as “a substitute for gold”.

Jerome Powell seems to understand what Bitcoin’s greatest current value proposition is for people living in the United States, Canada, or Europe: Bitcoin allows one to protect the fruits of one’s labor from the ravages of monetary inflation in a way that is resistant to censorship.

As such, Bitcoin can be seen as a version 2.0 of gold.

The fact that Bitcoin surpassed $1 trillion in market cap in February 2021 is just the beginning. Over the next decade, Bitcoin will see its market cap catch up to that of gold. It is clearly only a matter of time for me.

When Bitcoin catches up with gold’s market cap of $10T, its price will be around $450K. At that point, Bitcoin’s volatility will have started to slow down. The number of merchants supporting Bitcoin as a means of payment will have grown steadily over the decade.

Indeed, as more and more people own Bitcoin, merchants will have to adapt and support it.

The Lightning Network will have continued to grow, and Bitcoin will no longer suffer from the current scalability problems
for large-scale use as a means of everyday payment.

As the adoption of Bitcoin by the general public as a store of value and a means of payment will have progressed dramatically, we will see more and more people demanding that their wages be paid in Bitcoin. This is the logical next step, namely Bitcoin as a unit of account.

Jerome Powell’s statement that he sees Bitcoin as a substitute for gold and not for the US dollar is totally short-sighted.

The Bitcoin revolution will take time, but everything that is being built is moving in the direction of a Bitcoin that represents a real alternative to the dollar system. Bitcoin will not simply be a substitute for gold. Bitcoin is also a great P2P payment system.

As BTC accumulates, there will come a time when its users will use it in their daily lives. That takes time, of course, but that is the goal of the Bitcoin revolution. Jerome Powell pretends to not understand this in my opinion, to continue to devalue the importance of the Bitcoin revolution.

Nevertheless, more and more institutional investors are opening their eyes and understanding what is currently at stake with Bitcoin.

At the end of his webinar, Jerome Powell fell into self-satisfaction by explaining that the current system is ultra-efficient:

“The real threshold question for us is, does the public want or need a new digital form of central bank money to complement what is already a highly efficient, reliable and innovative payments-oriented system?”

This simple statement finally discredits Jerome Powell completely. Talking about an ultra-efficient system when it takes 2 to 5 days to make a global bank transfer through the SWIFT interbank payment system is a vast joke.

For Jerome Powell and the Fed, there is no immediate need to create a digital dollar.

Here again, we see the lack of foresight of the Fed, which will leave room for China to develop its e-RMB while increasing its influence around the world. For Bitcoin, Jerome Powell’s statements don’t change much, since no one expects anything sensible from an institution that has printed over $4 trillion in less than a year.

Bitcoin will continue to follow its plan for mainstream adoption no matter what: as a store of value, as a widespread means of payment in everyday life, and as a unit of account.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.inbitcoinwetrust.net/who-else-thinks-that-jerome-powell-is-short-sighted-in-seeing-bitcoin-only-as-a-substitute-for-gold-6451681bcce0?source=rss——-8—————–cryptocurrency