- Jerome Powell likens Bitcoin to gold, emphasizing its role as a speculative asset.
- Bitcoin surpasses silver in value, reaching $102K, but still far from gold’s $18 trillion.
As a seasoned analyst with over two decades of experience in the financial sector, I have witnessed firsthand the evolution of various assets and their roles within the global economy. Jerome Powell’s recent remarks on Bitcoin are noteworthy, as they provide valuable insights into the Federal Reserve’s perspective on this digital asset.
At the DealBook Summit held on the 4th of December, Federal Reserve Chairman Jerome Powell expressed his perspective on how Bitcoin [BTC] is adapting within the financial scenery.
In simpler terms, Powell noted that Bitcoin appears more like gold over time, with an emphasis on its possible role as a place to keep wealth instead of a typical spending currency.
He said,
“People use Bitcoin as a speculative asset. It’s like gold—it’s just virtual and digital.”
Jerome Powell’s bold Bitcoin stance
Indeed, Powell also spoke about the apprehensions surrounding Bitcoin’s possible challenge to the strength of the US dollar and the control of the Federal Reserve.
It’s important to note that although Bitcoin (BTC) is becoming more well-known, it doesn’t present a threat to the power of the US dollar. This is because BTC remains extremely volatile and isn’t commonly used as the main way to make payments or as a reliable place to store value on a wide scale.
As I delve deeper into the realm of digital assets, I find that Bitcoin’s role is constantly shifting. However, its volatility remains a significant factor that restrains its trustworthiness for widespread use in traditional financial dealings.
He added,
“It’s not a competitor for the dollar. It’s really a competitor for gold.”
Are Trump’s pro-crypto plans starting to take shape?
It’s worth noting that Powell made these remarks at a time when it’s anticipated that the upcoming Trump administration will advocate for making digital assets legally permissible.
It’s common knowledge that throughout his campaign, Trump showed support for digital currencies, collecting contributions in Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and Solana (SOL). Additionally, he made promises to create a national Bitcoin storage facility.
At the July Bitcoin conference, Trump underscored the importance of the United States leading in cryptocurrencies, lest we lag behind countries such as China in this field.
Yet, Powell emphasized that the Federal Reserve views itself as not responsible for governing the cryptocurrency industry.
When queried about his own views on Bitcoin, Powell shared that, being a public official, he is restricted from personally holding it.
Bitcoin’s recent trends
After Donald Trump’s victory in the elections a month ago, Bitcoin experienced a significant surge, reaching new peaks and momentarily exceeding $98,000 before leveling off.
On December 4th, Bitcoin was being traded at approximately $96,800. However, it didn’t halt there; in fact, it soared beyond the $100K threshold, reaching a peak of $102,436.85 following a 6.12% rise over a 24-hour period, as reported by CoinMarketCap.
In simple terms, with a worth of approximately $1.92 trillion dollars, Bitcoin now outranks silver in value, as silver’s worth stands at around $1.75 trillion. This positions Bitcoin as the eighth most valuable asset worldwide.
However, it still remains a long way from gold, which holds a market value of nearly $18 trillion.
Read More
- GBP EUR PREDICTION
- POL PREDICTION. POL cryptocurrency
- SEI PREDICTION. SEI cryptocurrency
- TRB PREDICTION. TRB cryptocurrency
- CNY RUB PREDICTION
- HBAR PREDICTION. HBAR cryptocurrency
- RLC PREDICTION. RLC cryptocurrency
- CTXC PREDICTION. CTXC cryptocurrency
- TNSR PREDICTION. TNSR cryptocurrency
- OKB PREDICTION. OKB cryptocurrency
2024-12-06 01:12