In today's fierce competition for digital currencies, a speech by Federal Reserve Chairman Powell has attracted widespread attention. He believes that Bitcoin is more like gold and cannot replace the US dollar. This view not only tugs at the heartstrings of investors, but also triggers people's deep thinking about the future trend of digital currencies. Let's explore in depth and uncover the relationship between Bitcoin and gold and the US dollar, as well as its position in the global financial system.

In the financial market, Bitcoin has always attracted much attention. As a decentralized, borderless, and limited-issue digital currency, the value of Bitcoin has been soaring. However, the statement of Federal Reserve Chairman Powell has dealt a heavy blow to Bitcoin. He pointed out that Bitcoin is more similar to gold than a global reserve currency that can replace the US dollar. This view has triggered a strong reaction in the market and has also triggered people's thinking about the true meaning of Bitcoin.

From a historical perspective, gold has always been regarded as a symbol of value and a safe haven asset. Whether it is an economic crisis or political turmoil, gold has always been a safe haven for people. The birth of Bitcoin was also inspired by this kind of gold. Its decentralization and scarcity give it similar characteristics to gold, making it the "digital gold" of the digital age. Powell's metaphor also aptly reveals part of Bitcoin's essence, namely its potential as a value-storing asset.

However, unlike gold, Bitcoin's value is more susceptible to market fluctuations and regulatory policies. Bitcoin's price fluctuates so much that some people even label it a "bubble." This instability makes it difficult for Bitcoin to play a role comparable to the U.S. dollar in the global economy. As the world's main reserve currency, the U.S. dollar's position is unbreakable, while Bitcoin still needs time and stability to win the trust of the market.

For investors, Bitcoin has both risks and opportunities. Although its price fluctuates greatly, it is this volatility that brings investment opportunities. Some people compare Bitcoin to "digital gold" and believe that it has unlimited future potential; others worry that the Bitcoin bubble will eventually burst, bringing huge risks. In any case, the development of Bitcoin requires more supervision and market norms to develop steadily in the global financial system.

In general, as an emerging digital currency, Bitcoin has unique value and challenges. Although Powell's metaphor gave Bitcoin a wake-up call, it also made people think more deeply about the future of digital currency. Bitcoin may not replace the U.S. dollar, but with its unique characteristics and potential, it will surely play an increasingly important role in the financial market. Let us wait and see the future development of Bitcoin.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Cryptocurrencies were once again in the spotlight during the second day of Federal Reserve Chairman Jerome Powell's testimony before the U.S. Senate. Today, lawmakers expressed their concerns about the threat that Bitcoin and other cryptocurrencies pose to the financial system, including the potential challenge of Bitcoin replacing the U.S. dollar as the world's reserve currency.

On the second day of Powell's testimony, senators reiterated their concerns about private companies such as Facebook, which are now using their money and power to try to create their own currencies and monetary policies.

Lawmakers also worried that the United States is lagging behind other countries in real-time payment methods.

In response, Powell said that he did not see Bitcoin being used as a payment method.

However, he pointed out that Bitcoin has increasingly replaced gold in the global economy as a store of value.

"Almost no one uses Bitcoin for payment, they use it more as a substitute for gold. It's a store of value; it's a speculative store of value, just like gold."

Lawmakers also mentioned that they are uncomfortable with the possibility that Bitcoin could replace the U.S. dollar as the world's reserve currency.

Powell admitted that this is possible - although only in the long term. He also emphasized that the United States should not assume that the dollar's status as a reserve currency will remain forever.

“I think it’s possible, but we haven’t seen widespread adoption… But that doesn’t mean it won’t happen, and if it does, we’ll be back to the days of multiple currencies, the days of national banks[1].”

Powell also said that having the dollar as the world’s reserve currency would have both advantages and costs. He also declared that to replace the dollar as the world’s reserve currency, the issuing country must have the rule of law and a highly developed financial system.

The Fed’s decision to consider Bitcoin as a store of value is obviously significant, as it is the world’s most important central bank. Many cryptocurrency enthusiasts celebrated the victory on Twitter.

However, regarding Powell’s views on the world’s reserve currency, gold enthusiast Peter Schiff was quick to point out:

“Powell is wrong. The world doesn’t need another reserve currency to replace the dollar. Gold is a better reserve asset than any fiat currency. In fact, gold reserves legitimize the currency it supports. The dollar became a reserve currency because it is backed by gold.”

Yesterday, Powell also pointed out that Facebook’s Libra project cannot “move forward” without first addressing issues such as money laundering, privacy and customer protection.

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The National Bank Acts of 1863 and 1864 are two federal banking laws in the United States that created the United States national banking system, encouraged the development of a national currency backed by U.S. Treasury securities held by banks, and established the Office of the Comptroller of the Currency as part of the United States Treasury and a system of nationally chartered banks. The acts shaped today's national banking system and support uniform banking policy in the United States. ↵