Jerome Powell Compares Bitcoin to Gold

The Chairman of the United States Federal Reserve, Jerome Powell, regards Bitcoin as a speculative asset, akin to gold. The official made this statement on November 4 at the DealBook summit.

BREAKING: ?? Fed Chair Jerome Powell says #Bitcoin is a competitor to gold, not the US dollar. pic.twitter.com/YQHFiThTBo

— Bitcoin Magazine (@BitcoinMagazine) December 4, 2024

“People use Bitcoin as a speculative asset, right? It’s like gold, only it’s virtual, digital,” Powell noted.

He added that the first cryptocurrency is not used for payments or savings due to its high volatility:

“It’s not a competitor to the dollar. It’s actually a competitor to gold — that’s how I see it.”

During the summit, the Fed Chair also told journalists that the central bank would prefer interactions between banks and crypto businesses not to pose threats to financial institutions.

When asked if he holds cryptocurrencies, Powell responded negatively, citing official restrictions.

The Federal Reserve lacks direct control over the industry; its influence on the market primarily stems from its decisions on the base interest rate for short-term loans between banks.

In November, Bitcoin’s price fell to $87,000 following Powell’s statements on the inadvisability of easing monetary policy.