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Ben Bernanke, former chairman of the Federal Reserve (Fed) said that Bitcoin will not become an alternative to money. He also suggested that Bitcoin is mostly used for underground economic activities for illegal activities.
Ben Bernanke stated that Bitcoin will not be accepted as an alternative means of payment right on the US television channel CNBC on May 16.
Ben Bernanke served as chairman of the US Federal Reserve from 2006 to 2014. In 2005, Bernanke was first nominated by President George W. Bush to serve as Fed Chair but was later appointed to the Board. Economic Advisor. In 2010, President Barack Obama nominated him for a second term as Fed chair.
As a prominent economist, Bernanke said valuing goods in Bitcoin will be a big challenge because the value of cryptocurrencies tends to fluctuate by the minute. In addition, no one will ever go grocery shopping using Bitcoin because it is “too expensive” and “too inconvenient” to do so. Ultimately, the attempt to launch Bitcoin as an alternative to fiat money is not going to work out.
To quote Bernanke in an interview with CNBC:
If Bitcoin replaces fiat money, you can use Bitcoin to buy groceries. No one buys groceries with Bitcoin because it’s too expensive and too inconvenient to do so. Moreover, the price of Bitcoin is also not stable.
The former Fed chair believes that Bitcoin is mainly used for underground economic activities to buy illegal things. He also added that Bitcoin will last as long as people believe and want to speculate.
Bitcoin’s primary use is mainly for underground economic activities and often illegal or illegal things.
Bernanke also predicts that cryptocurrencies will face more regulation in the future.
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