Even though Bitcoin was officially created and launched to be a peer-to-peer payments system that would help the unbanked, many people see it as a replacement for cash. While some are noting that it would take the pressure off cash and is a good thing, others say it is dangerous for the economy.
But while there have been arguments about that, Bitcoin has been making strides in the market back and forth. Recently, the digital asset touched the $50,000 psychological level to set the pace for other assets in the sector. In a recent argument for Bitcoin, the president of the Federal Reserve at St. Louis has noted that Bitcoin is rivaling gold in the market and not a physical currency like some people have made the media believe.
Bullard says that Bitcoin is trying to upset gold in the financial market
According to the president, Jim Bullard, even though Bitcoin proponents have been going around to claim that the digital asset might replace cash because of inflation and other factors, the asset is currently rivaling gold. Bullard also mentioned at an interview that he and others at the federal reserve have been watching Bitcoin for some time now. They believe that the asset is trying to upset gold to become the number one asset in the financial market.
Bullard also mentioned that as long as their economy and others rely on the dollar instead of Bitcoin, it will remain that way in some distant future. Also, he mentioned that no matter the amount of gold or Bitcoin that any trader decides to hold, it would not affect the price of the dollar.
Also, he mentioned that the price that gold or Bitcoin sells for would not still affect the dollar because of the reasons mentioned above. The president also remarked that Bitcoin is the only digital asset showing promise in the last few years and the only one that most people recognize.
Bullard likens Bitcoin to fake dollars created during the civil war
Bullard also went further to say that if an economy starts to rely on a currency that is not uniformed like digital assets, it might spell doom for them. Backing up his claims, he said that if people want to make transactions with digital assets, they will always go through the dilemma of picking the right one to use.
He said they could decide to send $3,000 worth of Bitcoin, and before it gets confirmed, the asset drops and the receiver gets $2,850 worth of Bitcoin in the process. He also mentioned the stability of digital assets, especially the price of Bitcoin, while talking about how it has gone up and come down in the last few weeks.
In his final blow to Bitcoin, Bullard said that Bitcoin is like the fake dollars that banks created across the United States during the civil war that happened in the country. While Bullard is busy trolling the leading digital assets, major entities are getting into the market every day. A typical example is the Elon Musk-led Tesla that bought a massive $1.5 billion worth of the digital asset.