Why did Jerome Powell just compare Bitcoin to gold?

Posted: 24 March 2021 11:32 am

Bitcoin is inescapable as the US Federal Reserve chair addresses competition to the US dollar, and Time Magazine looks for a Bitcoin-friendly CFO.

  • Bitcoin dips below AUD$70,000 as a range of indicators predict continued sideways movement
  • Jerome Powell likens Bitcoin to gold, criticises it as a currency
  • Time Magazine looking for a CFO "comfortable with Bitcoin and cryptocurrencies" in an attempt to rapidly modernise the publication

Bitcoin is currently trading at $71,826 after having dipped down to a low of $69,336 overnight.

How to buy Bitcoin

The digital gold has been trading sideways between $70,000 and $80,000 for a fortnight now, as buying support on exchanges looks to be weakening following a week of turbulent action in US stocks, which looks to have spilled over into cryptocurrency markets this week.

As for the rest of the market, altcoins are faring better than BTC and ETH, with streaming protocol Theta Network up 31% today to break into the top 10 cryptocurrencies by market cap following an increase of 270% over the past month.

Jerome Powell likens Bitcoin to gold

US Federal Reserve Chairman Jerome Powell served a backhanded compliment to Bitcoin today, labelling it "essentially a substitute for gold rather than for the dollar" as he attempted to distance the cryptocurrency from serving as a competitor to fiat currencies, namely the US dollar.

He elaborated that because Bitcoin is highly volatile and not backed by anything, it makes a poor substitute for money and more suited to speculation – like gold.

Powell's remarks may have been intended to disparage the digital currency, but instead may have the opposite effect by reinforcing the digital gold narrative from one of the biggest economic institutions in the world.

Powell was speaking at a panel on digital banking hosted by the Bank for International Settlements, going on to suggest that the Federal Reserve was exploring the possibility of a digital dollar, but was not in a rush.

To move forward on this, we would need buy-in from Congress, from the administration, from broad elements of the public, and we haven't really begun the job of that public engagement. So you can expect us to move with great care and transparency with regard to developing a central bank digital currency." ”

Jerome Powell, CNBC

Time Magazine looking for crypto-friendly CFO

Time Magazine is looking for a CFO "comfortable with Bitcoin and cryptocurrencies" in light of "rapid evolution" across the media landscape.

In a job advert listed on LinkedIn, the print and digital publication elaborated that it is looking for a leader that "recognizes how to transition a legacy business", which follows the company's recent move into NFTs. On Monday, the company announced the launch of three NFTs inspired by some of their most famous covers, which will be auctioned on NFT marketplace SuperRare later today.

The decision to move closer into cryptocurrencies and blockchain-based media comes in the middle of an unprecedented wave of NFT mania, which has seen digital artwork NFTs fetch as much as $69 million, while an image of the first-ever Tweet from founder Jack Dorsey went for a cool $2.9 million.

Interested in cryptocurrency? Learn more about the basics with our beginner's guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.

Disclosure: The author owns a range of cryptocurrencies at the time of writing

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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