Paul admits that BTC is digital gold! He said it cannot be compared with the US dollar and its main rival is this asset

Paul admits that BTC is digital gold

At the recent New York Times DealBook summit, big shots including OpenAI CEO Sam Altman, Amazon founder Bezos, and former president Bill Clinton all showed up. During this one-day cultural and business seminar, Federal Reserve Chairman Jerome Powell's remarks on BTC shocked everyone.

In an interview with Andrew Ross Sorkin of The New York Times, Paul mentioned, 'BTC is not a competitor to the US dollar, it is actually a competitor to gold.'

It is worth noting that in 2021, Bauer publicly stated that the Fed "will not ban BTC", and in 2023, he further admitted that cryptocurrency has "staying power" as an asset class.

However, despite Powell's recognition of BTC as the "digital gold," he also pointed out the obvious weakness of BTC: extreme price volatility.

How does Paul view BTC

Powell pointed out that the extreme price volatility of BTC not only limits its feasibility as a Medium of Exchange, but also makes it difficult to become a stable store of wealth. BTC's 'digital nature' may make it easier to attract the younger generation and technology enthusiasts to follow, but it is still not as firmly established as gold as a safe haven asset.

Bao Er's comments quickly sparked discussion on X (formerly Twitter). At the moment he spoke, the price of BTC rose more than 2%, breaking through $99,000. This morning, BTC broke through the long-awaited $100,000 mark in the public eye, and as of the time of writing, it is at $102,940, a big pump of nearly 8% in a single day.

According to CompaniesMarketCap.com, the market capitalization of Bitcoin has reached nearly 2.046 trillion US dollars, ranking seventh in the global total asset market cap, second only to gold and five top listed companies such as Nvidia, Alphabet (Google's parent company).

Federal Reserve VS BTC

However, Powell also emphasized that the primary focus of the Federal Reserve is still to maintain the status of the US dollar as the global reserve currency, with the primary goal being to ensure the stability of the dollar.

In addition, Powell also discussed the regulatory issues in the cryptocurrency market. He said that although the Central Bank does not directly regulate cryptocurrencies, he hopes to ensure that consumers participating in these digital assets are protected. He called for a safer and more regulated participation mechanism in the market, especially the establishment of appropriate bridges between the traditional banking system and the encryption market.

Overall, Powell's statement has clearly positioned BTC as the main competitor to gold. This is undoubtedly good news for cryptocurrency investors. On one hand, it deepens market recognition of BTC as 'digital gold.' On the other hand, it brings about a 'digital battle' between BTC and gold in an era of rapid global economic and technological change, becoming a key focus for the next few decades.

'Boer acknowledges that BTC is digital gold! He said that it cannot be compared with the US dollar, and its main competitor is this asset.' This article was first published in 'encryption city'.