Fed’s Crypto Plans May Turn Bitcoin Bulls Into Gold Bugs

The globalist push for central bank digital currency is ramping up.

On Monday, Federal Reserve Chairman Jerome Powell spoke at a virtual "Innovation Summit" hosted by the Bank for International Settlements, the central bank for central banks around the world.

Powell aimed his remarks specifically at digital currencies. And he made it clear that Bitcoin and other privately circulating crypto coins should not be allowed to supplant government-controlled fiat notes.

Clearly, Bitcoin’s recent surge to a market capitalization of $1 trillion set off alarms within the global central banking cabal. The prospect of cryptocurrencies becoming widely used in commerce and trade poses an existential threat to the world monetary order.

Powell derided cryptocurrencies: “They’re highly volatile and therefore not really useful stores of value, and they’re not backed by anything.”

Some sound money advocates would actually agree with those criticisms. But considering the source – a man who has digitally printed trillions of currency units “not backed by anything” and vowed to make them less valuable overtime via inflation – they come off as disingenuous.

Powell said of Bitcoin, “It’s more a speculative asset that’s essentially a substitute for gold rather than for the dollar.”

Here Powell gets things totally wrong.

The Fed chairman either has no clue about gold’s properties as a hard monetary asset, in contradistinction to both digital and fiat currencies, and no clue about why so many people have flocked out of dollars and into Bitcoin – or he is flat-out lying. (Hint: Powell’s lying.)

Bitcoin enthusiasts intend to substitute Bitcoin for the U.S. dollar and other national currencies – not for gold. A digital asset could not possibly substitute for gold or any other tangible asset that is valued for its unique physical properties.

Although some Bitcoiners tout the cryptocurrency as “digital gold” and liken the mining of coins on the blockchain to the actual mining of physical metal, these are mere analogies.

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