Jerome Powell, the Chairman of the US Federal Reserve (Fed) since 2018, has made noteworthy feedback on Bitcoin (BTC), regardless of his usually skeptical stance on cryptocurrencies. Talking on the DealBook Summit organized by the New York Instances, Powell in contrast Bitcoin to gold, stating it isn’t a competitor to the US greenback however somewhat to gold.
Throughout his speech, Powell referred to Bitcoin as a speculative asset, saying:
“Bitcoin is rather like gold. It’s digital, it’s digital.”
He clarified that BTC’s volatility prevents it from getting used as a type of fee or a retailer of worth, differentiating it from the US greenback.
Powell acknowledged, “BTC just isn’t a competitor to the greenback. BTC is definitely a competitor to gold.”
This isn’t Powell’s first time likening Bitcoin to gold. In March 2021, he made comparable remarks, describing each BTC and gold as speculative belongings.
When requested through the summit whether or not he personally owns Bitcoin, Powell declined to remark, citing restrictions on addressing such questions.
Bitcoin Surpasses $100,000 for the First Time
In a historic milestone, Bitcoin’s worth reached $103,679 on December 5, surpassing the long-anticipated $100,000 mark for the primary time. This achievement set a brand new all-time excessive (ATH) and marked BTC’s debut above the $100K stage in its historical past.
The cryptocurrency has skilled a sequence of record-breaking performances, coinciding with pivotal moments in US politics, akin to Donald Trump’s election as president.
Jerome Powell’s remarks underscore the notion of Bitcoin as digital gold, positioning it as a speculative various to conventional belongings like gold, somewhat than a alternative for fiat currencies just like the US greenback. As Bitcoin continues to interrupt data, its function within the monetary world stays a topic of great debate and curiosity.
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