'Just Like Gold': Fed's Powell Makes Crucial Bitcoin Statement

Federal Reserve Chair Jerome Powell says that Bitcoin is competing with gold

Cover image via U.Today

During a recent conversation with CNBC's Andrew Ross Sorkin, Federal Reserve Chair Jerome Powell drew parallels between Bitcoin and gold.

"People use Bitcoin as a speculative asset, right? It's like gold—only it's virtual, it's digital," he said.

Powell has noted that people are not actually using the leading cryptocurrency as a form of payment or a store of value.

Bitcoin cannot be seen as a US dollar competitor due to its high volatility, according to the Federal Reserve head.

"It's highly volatile. It's not a competitor to the dollar. It's really a competitor for gold. That's really how I think about it," he said.

According to CoinGecko data, Bitcoin is currently changing hands at $96,843, adding 0.6% following Powell's remarks.

Powell calling Bitcoin digital gold might indicate that the central banker has changed his stance on the leading cryptocurrency. This also shows how mainstream Bitcoin's investment narrative has become.

"From this day forth, you are no longer permitted to ask me to waste my breath and energy on the investment case for Bitcoin. Because it's no longer 2014. In 2024, you can look up Powell, Fink, Druckenmiller and other credible voices of monetary policy and investment leadership," Jeff Park, an active portfolio manager at Bitwise Asset Management, said in response to the gold comparison.

About the author

Alex Dovbnya

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at [email protected].

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'Just Like Gold': Fed's Powell Makes Crucial Bitcoin Statement

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