[Bitcoin Now] Powell Points Out "Unsuitable as a Store of Value"... Drops to 4% Range

Bitcoin Falls to 64 Million KRW Range
US Fed's Powell: "High Volatility and No Intrinsic Value... Unsuitable as a Store of Value"

Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), attending the U.S. Senate Banking Committee on December 1 last year [Image source=Yonhap News]

[Asia Economy Reporter Byungseon Gong] The leading cryptocurrency Bitcoin experienced a decline of over 4%. This appears to be influenced by Federal Reserve (Fed) Chair Jerome Powell's remarks that Bitcoin is not useful as a store of value.

According to the domestic cryptocurrency exchange Upbit, at 7:09 a.m. on the 23rd, Bitcoin was recorded at 64.34 million KRW, down about 4.1% from the previous day. It then slightly rebounded to 64.91 million KRW at 1:27 p.m.

Powell's criticism of Bitcoin seems to have acted as a negative factor. On the 22nd (local time), according to the U.S. economic media CNBC, Powell said at the Bank for International Settlements conference, "Bitcoin is highly volatile and has no intrinsic value, so it is not useful as a store of value," adding, "It is a speculative asset that replaces gold rather than fiat currency."

Previously, U.S. authorities have consistently made critical remarks about cryptocurrencies. Janet Yellen, U.S. Treasury Secretary, is a prominent Bitcoin skeptic. On January 19th, during a hearing, Secretary Yellen said, "I think cryptocurrencies are mainly used for illicit purposes." On the 22nd of last month, she also criticized Bitcoin, saying, "Bitcoin is inefficient and wastes energy." Recently, the U.S. Commodity Futures Trading Commission (CFTC) investigated Binance, the world's largest cryptocurrency exchange, for allegedly providing derivatives trading services to U.S. residents without authorization.

Powell also stated that the Fed will not rush the development of a central government-led digital currency. Currently, the Boston Federal Reserve Bank under the Fed is developing a digital currency in collaboration with the Massachusetts Institute of Technology (MIT). He said, "Developing a digital currency requires the consent of Congress, the government, and the public, but the public has not yet participated," adding, "It will be released in two years."

Meanwhile, Michael Saylor, CEO of MicroStrategy, which holds the largest amount of Bitcoin among private companies, rebutted the opinions of Bitcoin skeptics such as Warren Buffett. On the 21st, in an interview with the U.S. news weekly Time, CEO Saylor said, "Famous figures like Warren Buffett criticize Bitcoin, but the paradigm is changing," adding, "The establishment does not accept this well." He also explained, "In a situation where the money supply has surged, Bitcoin is a reasonable store of value." Earlier, in February last year, Warren Buffett had harshly criticized Bitcoin, saying it "has no value at all."

This content was produced with the assistance of AI translation services.