A fed chairman interview is never boring. The latest episode of the ’60 Minutes’ show on CBS featured the current chairman of Federal Reserve Jerome Powell. The show reflected how the central banks are once again in the spotlight amidst the ongoing COVID-19 pandemic. As economies reel under intense pressure, the world looks up to the central banks to control the decline using numerous financial tools at their disposal.
See Chair Powell’s interview on @60Minutes. Transcript of full interview: https://t.co/g1Ba5JNY4Ahttps://t.co/Uf0eQ24iVj
— Federal Reserve (@federalreserve) May 17, 2020
Critics of central banks have started questioning their ability to stem the COVID-19 tide. Central banks have to navigate a complex maze of regulatory hurdles to pump up the economy while simultaneously controlling inflation, deflation, market crashes, and overexuberance. But the ’60 minutes’ interview has one community excited and joyous – Bitcoin bulls.
Fed Chairman interview sheds subtle insights into the crypto industry
The 60 Minutes Fed chairman interview comes at a time when the investors are feeling nervous about the markets. The 15-minute interview saw Mr. Powell reassuring the general public about its recent actions.
Powell is hopeful of a V-type recovery happening sometime in the second half of 2020. He adds that the Federal Reserve has pumped in trillions of dollars to boost liquidity in the markets and the central bank is not out of ammo to support the economy. A more significant wave of stimulus can be delivered if the need arises. There is no limit to the type and scale of lending programs available with the fed.
To most investors, the Fed chairman interview may be reassuring, but crypto fans are deriving other corollaries from this interview. For a perennial Bitcoin bull, these words are nothing short of death knell for fiat and the start of the crypto reign.
Bitcoin bull case getting stronger each passing day
The Bitcoin bull case scenario is encouraged by the fact that more fed stimulus can stoke inflation in the system, thereby decreasing the value of the fiat currency. If words in Fed chairman interview are to be believed, printing trillions worth of dollars to kick start the monetary system post-COVID-19 can have negative economic consequences.
On the contrary, Bitcoins cannot be just printed out of thin air. Cryptocurrencies can be secured, transferred, and even scaled much more efficiently. The confidence in the Federal Reserve will erode further if it resorts to unnecessary dollar printing.
Crypto enthusiasts may be twisting Powell’s words to suit their narrative, but there’s no doubt that excessive money printing can lead to high inflation. In such a scenario, a limited Bitcoin supply can undoubtedly come out as a winner.
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