On monday Jerome Powell, chariman of FED is talking about Bitcoin. He says the most popular cryptocurrency is lacking key ingredients for being an useful currency. Therefore the crypto currency is essentially more of a substitute for gold than the dollar.
“Crypto assets are highly volatile — see Bitcoin — and therefore not really useful as a store of value. They’re not backed by anything. They’re more of an asset for speculation,”
“It is essentially a substitute for gold rather than the dollar,” he added.
Stable coins are “an improvement” over crypto assets, but their credibility comes from being backed by a sovereign currency.
“Stable coins may have a role to play with appropriate regulation, but that role will not be to form the basis of a new global monetary system,” he said. As usual he told about the volatility of bitcoin and therefore the risk (as intended by fiat point of view) and the energy usage for mining (this is also the mainstream narrative when referring to bitcoin).
Despite of making in evidence clear comparisons with gold, what told by Powell’s failed to create a growth sentiment in the market for bitcoin, which has declined after the speech.
Below a short extract of the live.