Bitcoin: the next gold or dollar

Today, Jerome Powell (Federal Reserve chairman) said that bitcoin is a substitute for gold and not the dollar.

Powell mentioned how bitcoin is highly volatile and how it's merely an asset with speculation. Digital dollar might be reality in the near future, but uncertainty still remains. He said, "Because we're the world's principle reserve currency, we don't need to rush this project." He isn't in a rush to create a digital dollar, however it can clearly be seen that there is value behind blockchain technology and the potential in cryptocurrencies. Given this current pandemic, a digital dollar could've been useful to help the economy as digital dollar could be sent out to Americans instantly.

Even if bitcoin replaces gold, there is still a lot potential for the value to increase. If you think about it, bitcoin's market cap is about $1.06 trillion and the market cap for gold is between $10 trillion - $11 trillion. Even though there is questioning behind how bitcoin can really be valued compared to gold, theoretically speaking, it can be seen that bitcoin has room to grow 10x the current value.

Based off my past experience, young retail investors should think long-term and accumulate a lot of shares (either in bitcoin or individual companies).