Fed-voorzitter Powell: “Bitcoin is een concurrent voor goud”

Remarkable words from Jerome Powell. The chairman of the U.S. central bank compared Bitcoin to gold, but does not see it as a threat to the dollar.

Bitcoin is "truly a competitor for gold": this statement comes not from a crypto investor like Michael Saylor, but from Fed Chairman Jerome Powell. During a panel discussion organized by the New York Times The 71-year-old said that Bitcoin "is like gold, but virtual." According to him, most investors see Bitcoin - like gold - primarily as a "speculative asset" or a "value storage."

As a means of payment, the crypto currency has not proven itself, according to Powell. "It is very volatile and not a competitor to the dollar," he added.

These views are not new. Back in 2021, Powell stated at a Bank for International Settlements event that Bitcoin "is more of a substitute for gold than for the dollar."

Bitcoin as digital gold

Bitcoin is often referred to as digital gold because of its function as a store of value. Investors speculate that digital gold will eventually surpass physical gold, fueling predictions of prices in the millions of dollars.

Recently, Bitcoin's market capitalization reached a record of more than €1.87 trillion ($2 trillion). This, according to companiesmarketcap in seventh place of most valuable assets worldwide. Gold has a market capitalization of nearly €16.8 trillion ($18 trillion).

Yet Bitcoin surpasses gold in one respect: its annual returns are much higher than gold.

Speculation on state reserves

Bitcoin's current price rise is being driven in part by speculation that the U.S. could create a national Bitcoin reserve. During his election campaign, Donald Trump hinted at this. Senator Cynthia Lummis, an outspoken Bitcoin supporter, is one of the biggest proponents of such a reserve. She proposed funding it by selling gold certificates.