Bitcoin started taking a share of gold
Former Fed Governor Kevin Warsh spoke about Bitcoin on the program he attended on CNBC. Warsh noted that the US Dollar has begun to lose strength, noting that bitcoin has been positively affected by this situation.
Kevin Warsh, one of the Fed’s post-crisis governors in 2008, joined CNBC’s Squawk Box program. Warsh, who rates the trio of US dollars, gold and bitcoin, said the rise in the price of bitcoin did not surprise him.
Bitcoin gets stronger as it weakens
Warsh was former chief executive of the US Central Bank. He said monetary policies pursued by Fed had never changed so radically since the Paul Walker era.
Dollar is starting to weaken. Given the economic conditions we are in, it may make sense to place Bitcoin in the investment basket.”
Bitcoin begins to eat gold
Warsh thinks some of increase in price of bitcoin could be explained by new trends in the investment world. According to Warsh, some gold investors have started to move out of the gold market and into bitcoin. He explained this situation as follows:
“If there was no such thing as Bitcoin in the world, gold would have rallied under these conditions. For people under 40, Bitcoin is now the new gold.”