Former US Federal Reserve Chairman Ben Bernanke expressed criticisms of Bitcoin during an interview. He considers this cryptocurrency an ideal tool for clandestine economic behavior.
Recently, there has been much 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 consequences of inflation in general, including concerns about a global recession.
Former US Federal Reserve Chairman 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.
Bernanke highlighted that Bitcoin and other assets whose value fluctuate and mutates minute by minute have reached some kind of success but, they got created to become a substitute for fiat money. In that sense, they have not yet achieved the success they seek.
“If bitcoin was a replacement for fiat money, people could use your bitcoin to go shopping everywhere. No one purchase goods with bitcoin because it’s too expensive and too inconvenient to do so.
More Negative Opinions
The most important use of Bitcoin is mainly for underground economic operations and things that are illegal or clandestine. Bernanke says he does not think Bitcoin could make it as an alternative form of money. However, he thinks that Bitcoin and digital assets will exist as long as people are believers and want to create speculative panoramas on the market.
Also, about the idea of being a store of value, the former president of the FED said that Bitcoin is mainly a speculative asset. Bitcoin could face much more regulation, and hostility is also at risk at some point, so Bitcoin investors should already know that.
On the other hand, investor and influencer Anthony Pompliano later added that Bernanke has a bias and that his views are just too inaccurate. Pompliano expressed that Bernanke was a member of the Federal Reserve and therefore is a member of the money-printing machinery.
‘Pomp’ also stated that they have people like the former acting director of the CIA who went into the blockchain to study its financial activities and come up with a solid base discussing that four percent of all transactions happen to cover illicit purposes.
Likewise, Pomp countered the former official’s opinion that Bitcoin could not serve as a tool on a daily basis. He defended Bitcoin in stores like the supermarket to acquire items there, as well as in major retailers from Shopify to Starbucks, Walmart, and McDonald’s, so he is confused about where exactly Ben Bernanke wants people to be able to spend Bitcoin.
By: Jenson Nuñez
