Former Federal Reserve governor and one-time Bitcoin skeptic Kevin Warsh says the top cryptocurrency is now a sensible investment.
In a new interview with CNBC Squawk Box host Andrew Ross Sorkin, Warsh, who in 2018 made the argument that Bitcoin was too volatile to be useful, says that he is now bullish on the flagship cryptocurrency.
Warsh tells Sorkin that investing in Bitcoin simply makes sense in the current economic climate.
“I think that Bitcoin does make sense as part of a portfolio in this environment where you have the most fundamental shift in monetary policy since Paul Volcker (former Federal Reserve Chair). This is a big shift that we’re seeing under the Powell Fed, rightly or wrongly.”
Warsh attributes the strong Bitcoin boom, to the weakness of the dollar.
He also says that Bitcoin is eating into gold’s market share as millennial stake their place in the market.
“So I’m not surprised in a period of dollar weakness that Bitcoin is doing what it’s doing. I’d also suggest that part of the move in Bitcoin is taking some of the bid from gold. I think if Bitcoin never existed, gold would be rallying more right now, but I guess if you’re under 40, Bitcoin is your new gold.
I think of Bitcoin as a lot of things, but it’s certainly with every passing day, getting new life as an alternative currency. When you see the strength of the Euro, the strength of the Pound, the strength of the RMB, the Korean won, the strength of the Mexican peso, I guess we shouldn’t be surprised at the strength of Bitcoin as well.”
Warsh’s comments arrive as Bitcoin has remained above $20,000 for a record 21 days.
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