Bitcoin Rises as a Challenger to Gold, According to Jerome Powell
During his participation in the DealBook Summit on December 4th, Federal Reserve Chair Jerome Powell expressed his perspective on the evolving role of Bitcoin in the financial world.
Powell characterized BTC as increasingly mirroring gold rather than the U.S. dollar, highlighting its potential as a means of storing value rather than a conventional currency.
He stated,
“Individuals utilize Bitcoin as a speculative asset. It is akin to gold—it exists solely in a virtual and digital form.”
Jerome Powell’s Assertive Stance on Bitcoin
As expected, Powell delved further into concerns regarding Bitcoin potentially undermining the dominance of the U.S. dollar and the Federal Reserve’s supremacy.
He clarified that despite its increasing acknowledgment, BTC does not pose a real threat to the stability of the dollar, as it remains highly fluctuating and isn’t extensively used as a primary payment method or a reliable store of worth.
Powell emphasized that while Bitcoin’s function as a digital asset is gradually advancing, its instability hampers its dependability in typical financial transactions.
He additionally remarked,
“It isn’t competing with the dollar; it truly competes with gold.”
Is Trump’s Pro-Crypto Agenda Beginning to Take Form?
Curiously, Powell’s comments coincided with the approaching Trump administration anticipated to advocate for the legitimization of digital assets.
As is common knowledge, during his campaign, Trump embraced cryptocurrencies, embracing BTC, Ethereum (ETH), Dogecoin (DOGE), and Solana (SOL) donations, and committing to establish a national Bitcoin reserve.
At the Bitcoin conference in July, Trump underscored the necessity for the U.S. to emerge as a dominant force in crypto, or else risk being outpaced by nations such as China.
Nevertheless, Powell reiterated that the Federal Reserve isn’t tasked with overseeing the cryptocurrency industry.
When asked about his personal viewpoint on BTC, Powell disclosed that, being a public servant, he is “prohibited” from owning it.
Recent Developments in Bitcoin
Following Trump’s election triumph last month, Bitcoin saw a remarkable surge, hitting all-time highs and momentarily exceeding $98,000 before stabilizing.
As of December 4th, Bitcoin was trading at approximately $96,800, but its ascent didn’t halt there—most recently, it leaped beyond the $100K milestone, reaching $102,436.85 after a 6.12% surge within 24 hours, as per CoinMarketCap.
With a market capitalization of $1.92 trillion, Bitcoin has now eclipsed silver, valued at $1.75 trillion, marking it as the eighth most valuable asset globally.
Nonetheless, it still trails far behind gold, which boasts a market worth nearing $18 trillion.