Federal Reserve Nominee Driving Up Bitcoin’s Price?

Federal Reserve Nominee

Bitcoin has now reached the $13,000 mark early this morning, and many analysts are still looking into why the digital token continues to break its own records. The results may have nothing to do with the cryptocurrency itself but more so about the latest nominee at the Federal Reserve (The Fed).

Marvin Goodfriend, has been called the ‘worst Fed nominee in History’ and a visionary by various news sources. However,

Still, the newest addition to the Fed may be contributing greatly to the rise of Bitcoin. Goodfriend’s anti-cash views are the first of its kind, from a person in his position.

The new representative had voiced his opinions that paper money puts financial freedom in the hands of the people, a plot that he does not like if a crisis were to occur. During such crisis, the Fed usually lowers interest rates for individuals, in order to increase the borrowing power for consumers and small businesses.

The issue is that if the Fed were to lower interest rates to something close to zero on checking and savings accounts, people now have the power to simply withdraw physical money from their accounts to stop the potential of them losing money. Goodfriend, does not like this freedom to protect the value of money and believes that cash is the limiting factor that holds back the power of the Fed from controlling the economy.

This rigid monetary stance might be the cause of the recent spike in Bitcoin and other cryptocurrencies. Should such stiff government policies come into existence, digital currencies might present a better method for trading and interact with currency that would be completely out of the Federal Reserve’s control. This is the exact reason why Bitcoin was created in the first place, back in 2008.

Obviously, there have been other factors in the rise of Bitcoin but Goodfriend’s remarks and opinions may have boosted its price unintentionally.

Featured Image: Depositphotos/© tanarch

Chelsea Roh is a freelance content writer living in Vancouver, BC. Her current focus is cryptocurrency, financial analysis and blockchain technology. In addition to content writing, she is an experienced Social Media Manager/Strategist. Before moving to Canada, she spent 10+ years marketing and working hands on in the medical practice industry.