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As the dollar currency index hits it lowest in two weeks following a speech from Federal Reserve Chair Jerome Powell recently. So called ‘safe havens’, currencies that are somewhat immune to inflation, have been on the rise with gold hitting highs above $2,000 and Bitcoin faring still comfortably in the high $11,000.
Filbfilb, a Cointelegraph analyst, argued that Bitcoin’s value relative to the dollar would certainly rise in the coming days following Powell’s speech. While this speech had great effect on the dollar currency index which fell after a few days of steady gain, most people in the crypto community had seen this change coming for a long time.
While this speech may not have impacted Bitcoin as much as Bitcoin/USD, the voices in the mainstream business world might have a much larger impact. Chief amongst them was Visa’s senior director of public policy who tweeted the following:
Safe havens such as Bitcoin and gold will certainly remain strong in such uncertain economic times but Bitcoin has all the necessary tools to win out in the long run and will certainly yield much higher benefits for modern investors who are ready to take the risk of cryptocurrency.
The superiority of Bitcoin over gold was recently argued for in a post by Tyler Winklevoss, the well-known crypto billionaire, on his blog. This was discussed in-depth in a previous article on this website
Raoul Pal, the CEO and founder of Real Vision, argued that Bitcoin and gold inevitably rise over time whether in inflation or delation as they both will avoid fiat devaluation which will be on the agenda of just about any central bank in the coming weeks.
What he argues for however is that while both might grow, Bitcoin has the potential to grow exponentially compared to gold. This signals that while the prices of the most important cryptocurrency might fluctuate on the short term, it is uniquely positionned on the long term to become the best way to store value for individuals and organisations.
While Bitcoin might need time to shake its reputation as a risky asset class, there is a strong argument to make that it has a particularly appealing potential in times of economic uncertainty. The fact that more and more members of mainstream fintech companies are hailing it as the alternative is a good sign for the future.