In his first day of testimony, Powell touched on the current state of the U.S. economy, covering everything from the ramifications of not raising the debt ceiling to his current status as it relates to the Trump administration and Facebook’s new Libra cryptocurrency initiative.
However, the moment that caught many people’s attention was Powell describing Bitcoin as a speculative store of value, comparing it to the likes of gold.
“Almost no one uses bitcoin for payments, they use it more as an alternative to gold,” he said. “It’s a speculative store of value.”
How far we’ve come. The Chairman of the Federal Reserve just compared bitcoin to gold
Folks, it’s happeninghttps://t.co/onVmTj4hUk
— Barry Silbert (@barrysilbert) July 11, 2019
This is perhaps the highest level of validation the Bitcoin-as-a-store-of-value narrative has seen to date, as many investors and observers have started predicting the digital asset will replace gold as the leading store of value.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.