Bitcoin Competes With Gold, Not the US Dollar, Says Fed Chair Powell

• Bitcoin likened to gold, not the US dollar, says Fed Chair Jerome Powell.
• Powell sees Bitcoin as a speculative, volatile asset, not a payment or value store tool.
• Bitcoin briefly surpasses $100K, reinforcing its role as a digital alternative to gold.

Federal Reserve Chair Jerome Powell has clarified his stance on Bitcoin (BTC), positioning it as a competitor to gold rather than the US dollar. Speaking at the New York Times DealBook summit, Powell addressed the perception of Bitcoin’s rise in popularity and its implications for the US dollar.

His comments come as Bitcoin garners significant attention, recently surpassing the $100,000 mark for the first time in history.

During the summit, Powell dismissed the idea that Bitcoin’s growing prominence stems from a lack of confidence in the US dollar. Instead, he argued that Bitcoin functions primarily as a speculative asset, similar to gold. According to Powell, given its high volatility, Bitcoin is not widely used for payments or as a stable store of value. 

“People use Bitcoin as a speculative asset, right? It’s like gold. It’s just like gold, only it’s virtual. It’s digital,” said Powell. “People are not using it as a form of payment or as a store of value. It’s highly volatile. It’s not a competitor for the dollar, it’s a competitor for gold.”

Powell’s comments come amid a politically charged backdrop regarding his position as Fed chair. Initially nominated by then-President Donald Trump during his first term, Powell’s tenure was marked by clashes with Trump, who considered removing him from office at one point. 

Despite these tensions, Powell completed his first term and was later reappointed by President Joe Biden in 2022 for a second four-year term. 

The current president-elect, Donald Trump, reportedly supports Powell completing his term until May 2026. Powell’s leadership at the Federal Reserve has been closely watched, particularly during periods of economic volatility.

Bitcoin’s rise in the financial markets continues to make waves. As of the writing, the leading cryptocurrency by market cap is trading at $98,013. Earlier this week, Bitcoin crossed the $100,000 threshold, holding above the milestone for several hours on Wednesday and Thursday before retreating slightly.