In a recent exclusive conversation with CNBC, Jerome Powell, the Chairman of the Federal Reserve, stated that Bitcoin is more of a rival to gold than it is to the U.S. dollar.

JUST IN: 🇺🇸 Federal Reserve Chair, Jerome Powell, states that #Bitcoin is a competitor to gold, and not the US dollar. pic.twitter.com/YQHFiThTBo

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“Bitcoin is seen as an investment option, similar to gold,” stated Powell.

“It is just like gold, only it exists in the digital realm. It’s not being used as a means of payment or as a store of value. Its volatility is high. It’s not in competition with the dollar, but it is indeed a rival to gold,” he further explained.

Though he seemed to contradict himself by stating Bitcoin is not used as a store of value, when it is one of its main uses today, his overall viewpoint is something I can agree with.

As a U.S. citizen, I don’t perceive Bitcoin as a threat to the U.S. dollar currently. Like many Bitcoin enthusiasts I know, we are trying to acquire as much Bitcoin as possible, using it to preserve value. When I use Bitcoin to make purchases, it’s not the Bitcoin from my long-term savings that I’m using. I convert dollars from my bank account into Bitcoin using the Cash App, and then send that Bitcoin directly to the vendor via the Lightning Network. This feels more like spending my dollars than the Bitcoin I’ve accumulated.

I prefer to use my depreciating dollars and save in Bitcoin, which appreciates in value. As BTC is not widely accepted where I reside, I need dollars for daily transactions. I am also motivated to spend my dollars because I can earn more Bitcoin through Bitcoin-back rewards apps such as Fold and Lolli.

When it comes to preserving wealth, I prefer Bitcoin over gold. I have no use for gold as it is not widely accepted, and although it retains its value against the dollar, it continues to lose value compared to Bitcoin each year. Holding gold makes no sense to me. Why would I choose a losing investment when I know the winning one is likely to continue outperforming?

I anticipate that most Americans would prefer the dollar over Bitcoin for transactions. Bitcoin is not currently a threat to the dollar. However, when it comes to choosing a store of value, between gold or Bitcoin, I believe Bitcoin is the superior choice. Despite Bitcoin’s market cap still being a fraction of gold’s, I believe Bitcoin will continue to be seen as superior to gold. Regardless of Powell’s full understanding of Bitcoin’s properties, he is accurate in stating that Bitcoin is more akin to a digital form of gold than a new payment system in the U.S.

This article is an Opinion Piece. The views expressed are solely those of the author and do not represent the views of BTC Inc or Bitcoin Magazine.

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