- Federal Reserve Chair Jerome Powell described Bitcoin as “digital gold,” emphasizing its speculative nature rather than its use as a payment system.
- Powell dismissed Bitcoin as a competitor to the US dollar, highlighting its volatility and likening it to precious metals like gold.
- Bitcoin’s price reached $96,843 following Powell’s comments, reflecting its growing recognition as a mainstream investment option.
Federal Reserve Chair Jerome Powell recently likened Bitcoin to gold during a conversation with CNBC’s Andrew Ross Sorkin. Powell emphasized Bitcoin’s role as a speculative asset, stating, “It’s like gold only it’s virtual, it’s digital.” His remarks highlighted that Bitcoin is not widely used for payments or as a reliable store of value, underscoring its volatility.
Bitcoin as Digital Gold, Not a Currency Competitor
Powell further clarified that Bitcoin cannot rival the US dollar due to its unstable value. He noted, “It’s highly volatile. It’s not a competitor to the dollar. It’s a competitor for gold.” This perspective illustrates the evolving narrative of Bitcoin, which has transitioned from an alternative payment system to a digital asset often compared to precious metals like gold.
Bitcoin’s price saw a modest increase following Powell’s remarks, trading at $96,843, according to CoinGecko data. This 0.6% uptick suggests that mainstream acceptance of Bitcoin as “digital gold” could be contributing to its price trajectory.
Industry Leaders Echo Powell’s Sentiments
The comparison to gold resonated with many in the financial sector. Jeff Park, a portfolio manager at Bitwise Asset Management, remarked that Powell’s acknowledgment reflects the shift in how Bitcoin is perceived by leading voices in monetary policy and investment.
Powell’s statements signify a significant moment for Bitcoin, showcasing its acceptance as a legitimate investment vehicle. This shift also underscores the alignment of cryptocurrency with traditional investment assets, reinforcing its place in the global financial landscape.
