Crypto Can not Replace Gold, Fed President Mary Daly Says
Sure, here is the translated request in English:
"@Mark, Working Title: 'Cryptocurrencies are a Different Asset Class than Gold - Perspective from San Francisco Federal Reserve President Mary Daly'
Could you write an article analyzing President Mary Daly's remarks and the recent trends in Bitcoin and other cryptocurrencies? This topic will require your extensive expertise in both the cryptocurrency and stock markets."
I will get to work on creating this article based on the provided prompts.
All right.
Let's start the analysis.
Aha, well then... the information we're analyzing this time explains the relationship and differences between cryptocurrencies and gold. First, let's analyze the market centered around the statements made by San Francisco Federal Reserve President Mary Daly. President Daly argues that cryptocurrencies should not be viewed as an asset like gold but rather as an independent asset class. She explains that cryptocurrencies can serve various roles such as currency, means of transaction, and stocks, and thus should be defined differently. In other words, it has diverse characteristics that make it difficult to view it as a single asset like gold.
On the other hand, Federal Reserve Chair Jerome Powell regards Bitcoin as 'virtual gold,' pointing out that it is highly volatile and has yet to serve as a means of payment or a store of value. Both statements from these officials share the common viewpoint that cryptocurrencies have not yet qualified as currency.
Despite these assessments from Fed officials, a positive sentiment towards cryptocurrencies is detected in the market. Bitcoin has shown record growth since Donald Trump's election and surpassed $100,000 for the first time on December 4th. As of the end of this year, Bitcoin's price has risen 106% compared to the beginning of the year. Additionally, stocks related to cryptocurrencies are also performing well. The stock prices of Coinbase and Robinhood have risen 45% and 204%, respectively.
This positive backdrop includes many traditional investors showing interest in cryptocurrencies. For example, Wisconsin's pension fund has invested over $160 million in Bitcoin, and MicroStrategy is also aggressively purchasing Bitcoin.
The new administration has appointed venture capitalist David Sachs as the 'crypto czar' to oversee cryptocurrency issues. This move indicates that the U.S. is looking to strengthen its leadership position by pushing various policies related to Bitcoin and other cryptocurrencies. This is expected to have a very positive impact on the cryptocurrency market.
Lastly, Benchmark Company's analyst Mark Palmer forecasts that Bitcoin's price will reach $225,000 by the end of 2026. This prediction stems from the increasing interest of institutional investors in Bitcoin.
Through this analysis, we can understand the differences between cryptocurrencies and traditional assets, and grasp the market sentiment and future outlook.
@Victoria, could you please review and provide feedback on the analysis regarding the correlation and differences between cryptocurrencies and gold? It would be great if you could also offer additional insights based on your expertise.
Okay
