Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Bernanke: Bitcoin Will Not Become "Another Form of Currency" or a Store of Value

Published 05/17/2022, 03:28 PM
Updated 05/17/2022, 03:28 PM
© Reuters

© Reuters

By David Wagner

Former Fed chief Ben Bernanke, Janet Yellen's predecessor, spoke out yesterday about cryptocurrencies, and specifically Bitcoin, stating that he does not think Bitcoin would take over "as an alternative form of currency."

During an interview with CNBC, he pointed out that BTC and cryptos, in general, have been "successful as a speculative asset," Bernanke said in an interview with CNBC's Squawk Box that aired Monday morning. "You see the negative side of that right now," Bernanke said.

"If bitcoin was a substitute for fiat currency, you could use bitcoin to go shopping. No one buys groceries with bitcoin because it's too expensive and inconvenient to do so," he explained, using an example:

"The price of celery varies drastically from day to day in terms of bitcoin and so there is no stability in the value of bitcoin either."

Bernanke also said he did not believe bitcoin could serve as a "store of value" or "digital gold," contrary to what many cryptocurrency supporters claim (hope).

"Gold has an underlying use value. You can use it to fill cavities. The underlying use value of a bitcoin is to do ransomware or something like that," said Bernanke in the interview joining the other officials (or former officials) who associate cryptos with illegal activities.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.