In its latest report, the U.S. Department of the Treasury has officially designated Bitcoin as “digital gold,” underscoring its critical role in the world of decentralized finance (DeFi).
According to the report for the fourth fiscal quarter of 2024, Bitcoin’s primary function has evolved into that of a store of value. The document highlights that, while significant speculative interest has fueled the popularity of digital tokens, Bitcoin is increasingly viewed as a digital counterpart to gold.
Interest in Bitcoin has surged following a series of key political developments. Recently elected U.S. President Donald Trump nominated Scott Bessent, a prominent cryptocurrency advocate, as Secretary of the Treasury. In July, the President also announced plans to establish a strategic national reserve of Bitcoin, capturing the attention of both the public and investors.
Federal Reserve Chair Jerome Powell also weighed in during the DealBook conference organized by The New York Times. Drawing comparisons between Bitcoin and gold, Powell described the cryptocurrency as a highly volatile asset that serves more as a store of value than as a payment medium. “It’s not a competitor to the dollar but rather a virtual equivalent of gold,” Powell remarked.
A key milestone for the cryptocurrency market was Bitcoin surpassing the $100,000 mark in December. This achievement not only reinforced the cryptocurrency’s status but also accelerated its integration into the traditional economy. Experts believe that further increases in Bitcoin’s value could drive heightened interest from both institutional investors and retail users.
Support from major corporations like BlackRock and MicroStrategy has also been instrumental in strengthening Bitcoin’s position. These companies have made significant investments in the digital currency, underscoring its potential as an innovative investment tool and a means of preserving capital over the long term.
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