
Former Federal Reserve chairman Ben Bernanke says the primary use of bitcoin is “largely for underground financial system actions and infrequently issues which are unlawful or illicit.” He added, “I don’t assume bitcoin goes to take over instead type of cash.”
Ben Bernanke on Bitcoin, Cryptocurrency
Former Federal Reserve chairman Ben Bernanke shared his view on bitcoin and different cryptocurrencies in an interview with CBNC Monday.
Bernanke is an economist who served two phrases because the chairman of the U.S. Federal Reserve, from 2006 to 2014. He oversaw the Fed’s response to the late 2000s monetary disaster throughout his tenure as chairman.
Noting that the values of bitcoin and different cryptocurrencies change minute-to-minute, he stated Monday:
They’ve been profitable as a speculative asset.
Nonetheless, he identified that “They have been meant to be an alternative to fiat cash,” including that “in that respect, they haven’t succeeded.”
He continued: “If bitcoin have been an alternative to fiat cash, you possibly can use your bitcoin to go purchase your groceries. No person buys groceries with bitcoin as a result of it’s too costly and too inconvenient to try this. Furthermore, the value of groceries … varies radically day-to-day by way of bitcoin so there is no such thing as a stability both.”
He opined:
The primary use of bitcoin is usually for underground financial system actions and infrequently issues which are unlawful or illicit.
Bernanke additional stated:
I don’t assume bitcoin goes to take over instead type of cash.
Nonetheless, he expects that bitcoin and cryptocurrencies “will likely be round so long as individuals are believers they usually need to speculate.”
When requested if BTC is a retailer of worth or digital gold in his opinion, Bernanke insisted that “it’s a speculative asset.”
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