Catenaa, Monday, December 09, 2024-The US Treasury has officially referred to Bitcoin as “digital gold” following its explosive price surge, which recently saw the cryptocurrency cross the $100,000 threshold.
The recognition marks a significant shift in the way the US government views Bitcoin, particularly as its market value continues to soar amid growing institutional interest.
Bitcoin’s price has more than doubled this year, fueled by a confluence of factors, including high-profile endorsements from companies like BlackRock and MicroStrategy.
The cryptocurrency’s rise is being likened to a modern-day version of gold, a comparison reinforced by Federal Reserve Chairman Jerome Powell, who recently called Bitcoin “just like gold, only virtual.”
The US Treasury’s report emphasized Bitcoin’s role as a store of value within decentralized finance (DeFi) ecosystems, noting that speculative interest has driven much of its growth.
Additionally, the report highlighted the growing demand for Bitcoin amid concerns over the US national debt, which has surpassed $36 trillion.
Calls for a US Bitcoin strategic reserve are gaining momentum, particularly after Tesla CEO Elon Musk’s warnings regarding the national debt.
Bitcoin’s rally has sparked optimism among investors, with some predicting it could eventually surpass gold’s $16 trillion market cap.
“Bitcoin is going much higher,” said Dennis Porter, a prominent Bitcoin advocate.
The surge in price is also seen as a psychological milestone, with experts noting that crossing the $100,000 mark is likely to bring increased media attention and interest from individual investors.
