$BTC The digital asset mentioned by Federal Reserve Chairman Jerome Powell as a real competitor to gold but not a threat to the US dollar is Bitcoin (Bitcoin). 🪙

📌 Powell's view on Bitcoin

Powell described Bitcoin as:

Speculative Asset: similar to gold.

Competitor for Gold: due to its nature as a rare digital asset that people use as "virtual gold" or "digital gold".

Not a Dollar Competitor: because he sees its extreme volatility and lack of widespread use as a means of payment or stable store of value preventing it from being competitive with the global reserve currency like the US dollar.

Comparison with Gold

Powell's comparison of Bitcoin to gold comes for several fundamental reasons:

Scarcity: both are characterized by defined scarcity (the issuance cap of Bitcoin is 21 million units).

Hedge Asset: both are often viewed as assets that can be used to hedge against inflation or economic instability.

Volatility: Powell points out that both are highly volatile and are primarily used for speculation rather than as a means of daily payment.

Would you like to know more about the key differences between Bitcoin and gold?