Former US FED President: “I don’t think Bitcoin will take over an alternative form of money” – DiarioBitcoin

Former US FED President: "I don't think Bitcoin will take over an alternative form of money" - DiarioBitcoin

Former US FED President: "I don't think Bitcoin will take over an alternative form of money" - DiarioBitcoin For DailyBitcoin Editor

The former chairman of the United States Federal Reserve, Ben Bernanke, made several criticisms of Bitcoin In an interview. she considers it “for clandestine economic activities”.

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It is Bitcoin an alternative to the global fiat money crisis?

In recent months, there has been a lot of discussion about the possibility of using Bitcoin as an alternative form of currency due to rising energy and food prices, as well as the increased fallout from inflation in general, including concerns about a global recession.

The former president of United States Federal Reserve, Ben Bernanke discussed with CNBC’s Andrew Ross Sorkin whether the US is going into a recession and whether cryptocurrencies can replace fiat as an alternative form of money.

Regarding cryptocurrencies, Bernanke stated:

“Bitcoin and other currencies whose value changes minute by minute have been successful, you see the downside of that now. But, they were intended to be a substitute for fiat money. In that sense, they have not been successful.”

He added:

“If bitcoin was a substitute for fiat money, you could use your bitcoin to go grocery shopping. No one buys groceries with bitcoin because it’s too expensive and too inconvenient to do so. Also, the price of groceries… varies radically from day to day in bitcoin terms, so there is no stability either.”

He also added even more negative opinions:

“The main use of Bitcoin is mainly for underground economy activities and things that are illegal and provoked. I don’t think Bitcoin takes over as an alternative form of money.”

However, he thinks the Bitcoin and cryptocurrencies “They will exist as long as people are believers and want to speculate.”

Speculative

Also, on the idea of ​​being a store of value, the former president of the FED said:

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“As I said, it is a speculative asset. Bitcoin could be subject to much more regulation, and hostility is also at risk at some point, so Bitcoin investors should be aware of that.”

However, investor and influencer Anthony Pompliano, later commented that Bernanke has a bias and that their views are “simply inaccurate on the facts”. Pompliano said that Bernanke was a member of the Federal Reserve and, therefore, is a member of the “money printing machine”

With respect to the assertion that most of the activity of Bitcoin has illicit purposes, ‘Pomp’ argued:

“We have people like the former acting director of the CIA who got into the blockchain to analyze the transactions and come up with an estimate of that four percent of all transactions are for nefarious or illicit purposes.”

Pomp also countered the former official’s view that Bitcoin could not be used in everyday life. defended the use of Bitcoin in the supermarket to buy products there, as well as in major retailers from Shopify until Starbucks, Walmart Y McDonald’s, so he’s confused about where exactly Ben Bernanke wants people to be able to spend Bitcoin.

It is worth explaining that Bernanke is an economist who served as chairman of the US Federal Reserve for two terms, from 2006 to 2014. He oversaw the Fed’s response to the financial crisis of the late 2000s during his tenure. as president. For years he has voiced his concerns that terrorists use Bitcoin.

You can see the full interview here:

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Sources: CNBC, finbold, bitcoin.comarchive

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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