Bitcoin's Volatility: A Barrier to Currency Status

Federal Reserve Chair Jerome Powell recently criticized Bitcoin, stating that its high volatility makes it unsuitable as a currency. Powell described Bitcoin as a "virtual gold" during an interview at the New York Times DealBook Summit, emphasizing that it is not being used as a form of payment or as a store of value.

Powell further reiterated the central bank's commitment to safeguarding the banking system against the risks posed by cryptocurrencies. He highlighted the need for consumer protection, ensuring that buyers fully understand the risks associated with crypto investments.

As Bitcoin approaches the historical benchmark of $100,000, Powell's remarks serve as a reminder of the ongoing debate about the role and stability of cryptocurrencies in the global financial system.