Bitcoin has been gaining immense traction, which has led to speculations about the king coin even replacing the dollar. However, a few officials were against this narrative. The Chairman of the United States Federal Reserve, Jerome Powell was one among them.
With its price surging over a high of $60K, Bitcoin [BTC] caught the attention of several individuals as well as institutional investors across the globe. This further elevated the presence of Bitcoin and even put the king coin on a pedestal. Addressing the emergence of Bitcoin, Chairman Powell, spoke at a Bank of International Settlements event.
Bitcoin [BTC] Could Be A “Substitute For Gold”
The Fed Chairman went on to point out the possible shakeup in the financial stability post the emergence of cryptocurrencies. The volatile nature of crypto has been a grave concern for several. Powell also suggested that the king coin could be a “substitute for gold” as opposed to a replacement of the dollar. He added,
“Crypto-assets — we call them ‘crypto assets’ — they’re highly volatile — see Bitcoin — and therefore not really useful as a store of value, and they’re not backed by anything. […..] They’re more of an asset for speculation, so they’re not particularly in use as a means of payment. It’s more a speculative asset. It’s essentially a substitute for gold rather than for the dollar.”
Bitcoin during the time of writing was trading for $56,788 with a 3.06% surge in the last 24-hours. Even though the asset had fallen since its recent all-time high of $61K, the demand for the king coin was intact.
Its no doubt that BTC and an array of other currencies are on a surge in terms of popularity. The king coin has been time and again touted as a store of value asset as opposed to a payment method. The volatile nature of the asset once again seemed to have posed a great problem.