The Fed believes that Bitcoin is not comparable to the USD

Bitcoin hovered around the $ 35,000 line on the last day, and it has been more than a month since BTC held above $ 30,000. Let’s take a look at the long-term BTC price as well as an overview of the development of this leading cryptocurrency in the crypto market.

Over the years, Bitcoin has repeatedly encountered doubts and objections from the traditional financial market as well as from many people. But BTC has not stopped growing in price and the number of participants who invest, hold, as well as the ecosystem. At the same time, the crypto market as well as BTC is getting stronger, Bitcoin has gradually become part of the financial market.

Bitcoin was born with the advantages of solving the problems of fiat money like inflation, easy to move and store, bridging the distance between countries in the crypto network, low fees and fast movement … have these things a big impact on the national fiat currency, especially the USD.

Recently, the Fed has given some views on bitcoin, gold, or any other store of value. Federal Reserve Vice President Randal Quarles said the presence of Bitcoin and other cryptocurrencies doesn’t matter. He argued that bitcoin, like crypto, is more of a risky and speculative investment than a revolutionary means of payment, and therefore it is very unlikely to affect the role of the USD.

When it comes to gold, the Fed sees gold as a glittering metal, but its interest in gold is also waning. Therefore, neither gold nor bitcoin can be compared to the USD.

The Fed has not yet clearly recognized the benefits of introducing the country’s own currency, CBDC (Central Bank Digital Currency), so the Fed can use stable coins based on the USD price in the current market. Hence, the Fed will rely on private stablecoins to take advantage of its benefits, but still own the USD.

The reason MicroStrategy invests in Bitcoin

The price of BTC fluctuates a lot, but the overall trend of BTC is increasing year on year. If the price of BTC was only around USD 10,000 a year ago, it is now USD 35,000 (before BTC rose to USD 65,000), then the current price is also around 3.5 times as much.

However, to this day, despite such large fluctuations, BTC is still trusted and invested by large companies around the world.

According to Bitcoin Treasury statistics, publicly traded companies made up 6.89% of total BTC so far, which is more than $ 51 billion. The actual number of companies in the world holding BTC can be much higher than that number due to the fact that there are companies that do not disclose information. The appeal of BTC to corporate and institutional investors is much greater than before.

MicroStrategy President and CFO Phong Le also shared why MicroStrategy developed such a strategy to buy BTC when the price of BTC fluctuated on the network and did not affect investors. He said the main reason MicroStrategy, as well as many other investment institutions, choose BTC is because the dollar continues to depreciate year on year.

Meanwhile, Bitcoin is still growing an average of 100% per year for the past 10 years. While others like gold still prove to be not the best store of value. Assuming Bitcoin will grow 20% annually, investing money in the business is unlikely to see 20 percent growth, but BTC could bring MicroStrategy a much higher return.

Some other information:

• Paraguay has “one of the most stable fiat currencies in the region and very low inflation. So the country wants to open its arms to welcome BTC to attract more crypto companies to develop. In the near future, the acceptance of BTC as the national currency for this country is not a priority, according to the correction by Carlos Rejala, a Paraguayan congressman with the Hagamos party.

• The Association of San Francisco Deputy Sheriffs has announced that it will invest in Bitcoin. They say now is a good time to start accumulating bitcoin. At the same time, in addition to Bitcoin, coins such as Dogecoin or other crypto currencies are good coins to donate to this association.

• In an interview with CNBC, Congresswoman Cynthia Lummis encouraged people to buy and hold bitcoin and invest bitcoin as a retirement plan. She is a huge public supporter of Bitcoin.

• Vietnamese-American businessman Johnny Dang accepts bitcoin payments for his company’s products.

In general, Bitcoin encountered a lot of criticism and rejection from the government as well as many investors in the early days, but the leading coin in the crypto market is growing and growing. Bitcoin has mechanisms for solving the problem of inflation and the depreciation of fiat money and is chosen by many large investment institutions.

Hence, whenever we hear any information from anyone, we must assess why they are giving such information and look at the facts, a multi-dimensional assessment, to avoid being guided by the information. Thuan has always believed in the long-term development of Bitcoin and looked at the long-term investment opportunities for BTC as well as some other cryptocurrencies. Hope you get useful information from the above parts.