Bitcoin to Beat Gold Not Digital Dollar, Says Fed Chairman

The U.S. Fed chairman Jerome Powell said that Bitcoin is a speculative asset like gold and does not see it as a replacement for the American dollar. And certainly not a digital dollar.

Powell spoke at the Innovation Summit by the Bank of International Settlements (BIS). The online conference’s most pressing issues were the rise of Bitcoin, the digital dollar plans, and stablecoins. 

On Bitcoin, Powell said that BTC is a “speculative asset,” with no backing, and more a substitute for gold than the dollar. He addressed the risks of holding crypto assets due to their volatility and energy requirements for mining. He added,

“Crypto-assets—see Bitcoin—are highly volatile and therefore, not useful as a store of value. They are not backed by anything, they’re more of an asset for speculation.”

Despite drawing comparisons with gold, Powell’s comments failed to instill growth sentiments in the market.

Federal Reserve Chairman, "Bitcoin is a substitute for gold" pic.twitter.com/tiiduHVK2D

— Documenting Bitcoin