Jerome Powell: “Bitcoin is like gold”

MetaversePlanet December 6, 2024Last Updated: December 6, 2024

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Jerome Powell, the Chairman of the US Federal Reserve (Fed) since 2018, has made noteworthy comments on Bitcoin (BTC), despite his typically skeptical stance on cryptocurrencies. Speaking at the DealBook Summit organized by the New York Times, Powell compared Bitcoin to gold, stating it is not a competitor to the US dollar but rather to gold.

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Powell’s Bitcoin Commentary

During his speech, Powell referred to Bitcoin as a speculative asset, saying:

“Bitcoin is just like gold. It’s virtual, it’s digital.”
He clarified that BTC’s volatility prevents it from being used as a form of payment or a store of value, differentiating it from the US dollar.
Powell stated, “BTC is not a competitor to the dollar. BTC is actually a competitor to gold.”

This is not Powell’s first time likening Bitcoin to gold. In March 2021, he made similar remarks, describing both BTC and gold as speculative assets.

When asked during the summit whether he personally owns Bitcoin, Powell declined to comment, citing restrictions on addressing such questions.

Bitcoin Surpasses $100,000 for the First Time

In a historic milestone, Bitcoin’s price reached $103,679 on December 5, surpassing the long-anticipated $100,000 mark for the first time. This achievement set a new all-time high (ATH) and marked BTC’s debut above the $100K level in its history.

The cryptocurrency has experienced a series of record-breaking performances, coinciding with pivotal moments in US politics, such as Donald Trump’s election as president.

Jerome Powell’s remarks underscore the perception of Bitcoin as digital gold, positioning it as a speculative alternative to traditional assets like gold, rather than a replacement for fiat currencies like the US dollar. As Bitcoin continues to break records, its role in the financial world remains a subject of significant debate and interest.