Former Fed guv not surprised by Bitcoin’s current market performance
Former Fed governor Kevin Warsh believed that US dollar is losing value and this situation seems to be affecting Bitcoin in a positive way. Kevin Warsh was a governor of the Federal Reserve System during and in the aftermath of the 2008 financial crisis. In a recent interview on CNBC’s Squawk Box, the former government official analyzed US dollar, gold and Bitcoin.
He stated that the rise in the price of the digital asset did not surprise him, in a period of “dollar weakness.”
Many believe that Bitcoin’s increasing prices stem from growing institutional investment, while others think young investors are opting for Bitcoin instead of gold and other assets. Further, Warsh said in a statement:
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.
According to Kevin Warsh, US monetary policies followed by the Fed “have never changed so radically since the Paul Walker era.” Further, Warsh believed that Bitcoin is becoming more mainstream and has the potential to become an alternative currency.
Considering the economic conditions we are in, Warsh also thinks that it may make sense to reserve a place for Bitcoin in the investment portfolio and said:
I think Bitcoin does make sense as part of a portfolio in this environment.