Key Points
- The U.S. Treasury Department officially recognizes Bitcoin as “digital gold”, emphasizing its role as a store of value.
- President Trump’s nomination of pro-Bitcoin advocate Scott Bessent as Treasury Secretary signals potential strategic reserve plans for Bitcoin.
The U.S. Treasury Department has given official recognition to Bitcoin, likening it to “digital gold”. This highlights the cryptocurrency’s emerging role as a store of value.
In a recent report, the Treasury stated that the primary use case for Bitcoin seems to be a store of value, similar to gold, in the world of decentralized finance (DeFi).
Bitcoin’s Rise
Bitcoin’s market valuation has seen a meteoric rise from $6.4 billion in 2015 to an estimated $1.3 trillion by 2024. This exponential growth underscores the increasing interest in DeFi and digital tokens.
Adding to the momentum, President Donald Trump has nominated Scott Bessent, a strong Bitcoin advocate, as the next Treasury Secretary. This move, along with Trump’s earlier pledge to establish a national Bitcoin reserve, signals a significant shift in the U.S. approach to digital assets.
Views from Other Executives
Federal Reserve Chair Jerome Powell recently compared Bitcoin to gold at the DealBook conference. Similarly, ARK Invest CEO Cathie Wood and Dennis Porter echoed the sentiment that Bitcoin is akin to digital gold.
In the meantime, Bitcoin’s price has seen a slight drop of 0.67% in the last 24 hours. However, analysts speculate that the rally could lose further momentum following Trump’s inauguration on 20th January 2025. Despite this, Bitcoin’s future remains uncertain as it navigates its next moves.
