‘Just Like Gold’: Fed’s Powell Makes Crucial Bitcoin Statement

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As a seasoned financial analyst with over two decades of experience in traditional markets and emerging assets, I find Powell’s comparison of Bitcoin to gold intriguing, yet unsurprising. Having witnessed the evolution of digital currencies from their infancy, it is clear that the narrative surrounding Bitcoin has matured significantly.

In a recent chat with Andrew Ross Sorkin from CNBC, the Chairman of the Federal Reserve, Jerome Powell, likened Bitcoin to gold during their discussion.

He pointed out that many individuals treat Bitcoin as an investment, similar to gold, but in a digital form instead.

Powell points out that, contrary to popular belief, individuals are not primarily employing the dominant digital currency for transactions or as a means to hold its worth.

According to the head of the Federal Reserve, it’s not accurate to view Bitcoin as a rival to the U.S. dollar because of its extreme price fluctuations.

“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. 

Based on information from CoinGecko, the current trading price of Bitcoin is approximately $96,843. This increase comes as a result of 0.6% growth, which follows remarks made by Powell.

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.  

Moving forward, I kindly request that you refrain from seeking my input on the argument for Bitcoin investments, as we’re no longer in the year 2014. In 2024, feel free to consult experts like Powell, Fink, Druckenmiller, and other influential figures in monetary policy and investment strategy for their insights. This is the stance taken by Jeff Park, an active portfolio manager at Bitwise Asset Management, when addressing the comparison between Bitcoin and gold.

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2024-12-04 23:08