U.S. Treasury Secretary Janet Yellen has warned about the dangers of bitcoin as the price of the leading cryptocurrency took a nosedive. She sees bitcoin as a highly speculative asset and is worried about potential losses investors can suffer. Yellen also believes that bitcoin is not widely used as a transaction mechanism due to its inefficiency, reiterating her view that cryptocurrency is often used for “illicit finance.”
Janet Yellen blasts against bitcoin.
Janet Yellen has blasted bitcoin again Monday in an interview with CNBC at the New York Times Dealbook conference. The treasury secretary “issued a warning about the dangers that bitcoin poses both to investors and the public,” the news outlet conveyed. She added, “It is a highly speculative asset and you know I think people should be aware it can be extremely volatile, and I do worry about potential losses that investors can suffer.” The comments came after bitcoin took a nosedive and dropped below $50,000. The price of bitcoin started falling sharply Sunday afternoon, dropping almost 18% from the high of above $58K to $48,870 at the time of writing.
“I don’t think that bitcoin is widely used as a transaction mechanism.”
The treasury secretary further opined, “I don’t think that bitcoin … is widely used as a transaction mechanism. To the extent it is used, I fear, it’s often for illicit finance.” “It’s an extremely inefficient way of conducting transactions, and the amount of energy that’s consumed in processing those transactions is staggering,” she added. Earlier, Microsoft founder Bill Gates had warned bitcoin investors to watch out if they don’t have as much money as Elon Musk.