Former Federal Reserve Chairman Ben Bernanke says the primary use of Bitcoin is “primarily for underground economic activity and often for things that are illegal or illicit.” He added: “I don’t think bitcoin will catch on as an alternative form of money.”
Ben Bernanke on bitcoin, cryptocurrency
Former Federal Reserve Chairman Ben Bernanke shared his views on Bitcoin and other cryptocurrencies in an interview with CBNC on Monday.
Bernanke is an economist who served two terms as Federal Reserve Chairman from 2006 to 2014. During his tenure as chairman, he oversaw the Fed’s response to the financial crisis of the late 2000s.
Noting that the values of Bitcoin and other cryptocurrencies are changing by the minute, he said on Monday:
They were successful as a speculative investment.
However, he pointed out that “they were intended as a replacement for fiat money,” adding that “they have not had success in that regard.”
He continued, “If bitcoin were a substitute for fiat money, you could use your bitcoin to buy your groceries. No one buys groceries with bitcoin because it’s too expensive and cumbersome. Furthermore, the price of groceries…radically fluctuates day-to-day in terms of bitcoin, so there is no stability either.”
He mean:
The main use of Bitcoin is mainly for underground economic activities and often for things that are illegal or tortious.
Bernanke further said:
I don’t think bitcoin will prevail as an alternative form of money.
Nonetheless, he expects Bitcoin and cryptocurrencies to exist “as long as people believe and want to speculate.”
When asked if he thinks BTC is a store of value or digital gold, Bernanke insisted that “it’s a speculative asset.”
What do you think of Ben Bernanke’s comments? Let us know in the comments section below.
Kevin Helms
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