Jerome Powell Draws Parallels Between Bitcoin and Gold, Calling It "Digital Gold"

During a recent conversation with CNBC's Andrew Ross Sorkin, Federal Reserve Chair Jerome Powell drew parallels between Bitcoin and gold.

Federal Reserve Chair Jerome Powell has compared Bitcoin to gold, suggesting that the leading cryptocurrency is not a competitor to the US dollar.

During a recent conversation with CNBC's Andrew Ross Sorkin, Powell noted that people are using Bitcoin as a speculative asset, much like gold, but only in a virtual, digital form.

However, the Federal Reserve head has emphasized that people are not actually using Bitcoin as a form of payment or a store of value.

"It's not a competitor to the dollar. It's really a competitor for gold. That's really how I think about it," Powell said.

According to CoinGecko data, Bitcoin is currently changing hands at $96,843, adding 0.6% following Powell's remarks.

This comparison to gold could be an indication that Powell has shifted his stance on Bitcoin, considering his previous statements about the cryptocurrency being used "for illicit finance and other activities that are not really legal."

However, the inclusion of Bitcoin in mainstream conversations and discussions about gold and other traditional investment avenues highlights how far the narrative around cryptocurrency has come.

"From this day forth, you are no longer permitted to ask me to waste my breath and energy on the investment case for Bitcoin. Because it's no longer 2014. In 2024, you can look up Powell, Fink, Druckenmiller and other credible voices of monetary policy and investment leadership," Jeff Park, an active portfolio manager at Bitwise Asset Management, said in response to the gold comparison.