Jerome Powell Declares Bitcoin Closer to Gold Than US Dollar, Sparking New Debate

Federal Reserve Chairman Jerome Powell recently addressed Bitcoin's role in the financial market, comparing it to gold rather than the US Dollar.

Speaking at the New York Times Dealbook Summit, Powell stated that Bitcoin is a speculative asset more closely aligned with gold, not the greenback, a comment that has sparked debate about Bitcoin’s place in the broader economy.

Jerome Powell Live at DealBook Summit 2024 https://t.co/rw4fWXJioI

— Andrew Ross Sorkin (@andrewrsorkin) December 4, 2024

Powell’s statement highlights Bitcoin’s evolution from a peer-to-peer payment tool to a potential hedge against inflation, much like gold. While both Bitcoin and gold have reached record highs this year, Bitcoin has outperformed gold in year-to-date growth.

The rise in Bitcoin’s institutional adoption is also notable. Companies like MicroStrategy have significantly increased their Bitcoin holdings, with a recent $1.5 billion purchase of 15,400 BTC. Furthermore, the approval of spot Bitcoin ETFs earlier this year has provided a new avenue for traditional investors to gain exposure to Bitcoin.

This shift in institutional behavior signals growing acceptance of Bitcoin as a mainstream asset class. With major financial players increasingly incorporating Bitcoin into their portfolios, the landscape for digital assets is rapidly changing. As Bitcoin gains wider recognition as a store of value, it continues to challenge traditional notions of wealth preservation, positioning itself as a competitive alternative to gold for many investors.