Bitcoin: A Closer Look at Its Role as Digital Gold
Federal Reserve Governor Christopher J. Waller has likened Bitcoin to “electronic gold,” portraying it as a store of value that does not yield returns. During a “Crypto in America” livestream on October 21, 2025, Waller shared his perspective on Bitcoin’s nature as a commodity more akin to gold rather than a payment tool. His views underscore the belief-driven value of Bitcoin, which relies on the collective expectation of its worth rather than traditional cash flows.
The Concept of Bitcoin as ‘Electronic Gold’
Waller has consistently maintained that Bitcoin is destined to become similar to electronic gold. He explained, “Bitcoin is a store of value with no promised returns. You buy it and hold it, hoping for value appreciation, much like gold. It holds a positive price, yet lacks fundamental intrinsic value, similar to gold.” He emphasized that the value of assets like Bitcoin and gold is sustained through “belief equilibrium,” where the expectation is that others will pay more for it in the future.
Advertisement Banner
Waller’s Ongoing View and Its Implications
Waller’s perspective is not novel; he has previously argued that while many cryptocurrencies lack intrinsic value, Bitcoin stands out as a vehicle for wealth preservation. He regards it on par with collectibles and precious metals, which maintain value because markets recognize them as stores of value. In his words, “Bitcoin to me is essentially electronic gold.” Despite lacking intrinsic worth, Bitcoin’s acceptance as a store of value reflects a broader market consensus.
Federal Reserve’s Approach to Digital Assets
Waller’s recent remarks come at a time when the Federal Reserve is engaging with policy and technology stakeholders on digital assets and payment innovations. His October 21 comments were part of the central bank’s initiative to explore payment innovation, highlighting both Bitcoin’s characterization and the Fed’s interest in examining narrower access models for innovators, which may include crypto-native firms.
Bitcoin in Context: Insights from Federal Reserve Chair Jerome Powell
Federal Reserve Chair Jerome Powell has also drawn parallels between Bitcoin and gold. At the New York Times DealBook Summit in December 2024, Powell described Bitcoin as a speculative asset, comparing it to gold by highlighting its virtual and digital nature. He clarified that Bitcoin competes with gold, not the US dollar. This analogy from a sitting Fed Chair reinforces the notion of Bitcoin as a store of value similar to gold.
Monetary Officials’ Consensus on Bitcoin
The statements from Waller and Powell collectively reinforce a common viewpoint among monetary authorities: Bitcoin is a non-yielding, belief-driven store of value distinct from traditional currencies and stablecoins designed for transactions. Recently, Fed Governor Barr cautioned that the GENIUS Act might shield Bitcoin from the central bank’s oversight, further emphasizing its unique position.
As of now, Bitcoin is trading at $107,985, reflecting its dynamic market position and ongoing relevance in financial portfolios.
Commitment to Quality Editorial Content
Editorial Process
At bitcoinist, our editorial process is dedicated to providing meticulously researched, accurate, and unbiased content. We adhere to rigorous sourcing standards, ensuring each page undergoes thorough review by top technology experts and seasoned editors. This commitment guarantees the integrity, relevance, and value of our content for our readers.
