Bitcoin ‘Going Through the Roof’ Unlike Assets Controlled by Government, Says Former Fed Governor

Bitcoin ‘Going Through the Roof’ Unlike Assets Controlled by Government, Says Former Fed Governor

Former Federal Reserve Governor Kevin Warsh is optimistic about Bitcoin. He sees that all assets that are not controlled by the US government “go through the roof” as opposed to what the Fed claims to control. He gave three reasons why Bitcoin makes sense to him.

Why the former Fed governor is bullish on Bitcoin

Kevin Warsh was Governor of the Federal Reserve during and after the 2008 financial crisis. He also served as the Fed’s representative to the G20. Warsh was asked for his opinion on Bitcoin during an interview with CNBC’s Squawk Box on Wednesday.

First, he noted that “any asset price that the US government does not control” and “the Federal Reserve does not control” can skyrocket. He mentioned Bitcoin, which he called “the anti-government price in a way,” and gold, which he called “the barbaric relic that has been around for 5,000 years.” The former Fed governor exclaimed:

These things all go through the roof while those assets that the Federal Reserve purports to control, which it has controlled for nearly a decade, seem suppressed.

“It is this distinction that I think the Chinese are imposing on the world’s investors who are saying something is happening and the treasury market is not responding,” continued Warsh.

The former Fed governor went on to explain why he thinks Bitcoin “makes sense” to him. “The dollar is weakening,” he began, adding, “I would try to keep the dollar weaker against a large basket of currencies.” Warsh stated, “This is because of an incredibly aggressive Federal Reserve that will rightly or wrongly be more aggressive than the rest of the world’s central banks.”

Warsh also pointed out that there are new fiscal policies that weren’t considered a decade ago. “We now have the idea that the US government shouldn’t worry as long as you can cover your interest bills,” he said. “It’s a pretty radical change in monetary and fiscal policy, and to be honest, it’s a bipartisan change. I hear a lot of Democrats and Republicans singing the same tune that the Fed can just monetize this debt and make it go away. “

Warsh stated that “Bitcoin makes sense as part of a portfolio in this environment” and suggested that some investors switch from gold to bitcoin. He mean:

If Bitcoin never existed, gold would go up even more now. But I think if you are under 40 then Bitcoin is your new gold.

Do you agree with former Fed Governor Kevin Warsh? Let us know in the comments below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

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