Bitcoin's Volatility Raises Doubts Over Its Role as a Currency

Federal Reserve Chair Jerome Powell recently criticized Bitcoin, stating that its high volatility makes it unsuitable as a currency. Powell referred to Bitcoin as a "virtual gold" during an interview at the New York Times DealBook Summit, emphasizing that it is not a competitor for the dollar but rather a competitor for gold. Powell's comments highlight the ongoing debate about the role and stability of cryptocurrencies in the global financial system.

Powell also reiterated the central bank's commitment to safeguarding the banking system against the risks posed by cryptocurrencies. He stressed the importance of regulating the interaction between the crypto business and banks to ensure their safety. Additionally, Powell emphasized the need for consumer protection, urging buyers to fully understand the risks associated with cryptocurrencies.

As Bitcoin approaches the historical benchmark of $100,000, Powell's remarks come at a time of significant interest and speculation in the cryptocurrency market. Bitcoin is currently trading 0.69% higher at $96,588, while Ethereum has seen a 6% increase, trading at $3,836 as of 2:25 pm ET.