Powell Declares Bitcoin Competes with Gold, Not the Dollar

Bitcoin’s True Rival? Powell Declares It Competes with Gold, Not the Dollar

Written by Aaron S.,

Editor-In-Chief

Last Updated: December 05, 2024

Key Takeaways

Powell reaffirms Bitcoin competes with gold, not the US dollar, due to its speculative nature and volatility;
Despite Bitcoin’s 70% rise, Powell dismisses concerns about it replacing the dollar or signaling distrust in the Fed;
Powell supports crypto-bank partnerships if they maintain financial stability, though consumer protection isn’t the Fed’s role.

Speaking at the DealBook Summit hosted by The New York Times, Jerome Powell, the US Federal Reserve Chairman, once again emphasized that Bitcoin BTC $100,668.00 should be viewed as a competitor to gold rather than a rival to the US dollar.

This perspective is not new for Powell, who previously shared similar thoughts during a 2021 event organized by the Bank for International Settlements.

Back then, Bitcoin was priced at $58,200, and Powell had warned that cryptocurrencies like Bitcoin were speculative assets with no inherent backing. Despite the criticisms, Bitcoin’s market performance has seen it rise by 70%, outpacing gold’s 52% growth.

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Powell also dismissed the notion that Bitcoin represents a lack of confidence in the US dollar or the Federal Reserve. When questioned by New York Times journalist Andrew Ross Sorkin about whether Powell himself owned Bitcoin, he responded, “I’m not allowed to”.

However, Powell made it clear that he has no objections to crypto businesses collaborating with banks, as long as they do not endanger the financial institutions' stability or health. Consumer protection remains a focus, though Powell pointed out that this is outside the direct purview of the Federal Reserve.

While Bitcoin’s position in the financial landscape remains a topic of debate, its potential continues to captivate experts. Recently, Dan Morehead shared his thoughts on Bitcoin’s rise and future trajectory. What is Morehead's perspective on Bitcoin? Read the full story.