Former Fed Chairman Doubts Prospects of Bitcoin as Alternative to Fiat

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Former Fed Chairman Ben Bernanke has said that the attraction of Bitcoin and other cryptocurrencies is that they are “successful as a speculative asset.”

According to him, digital assets “were conceived as a replacement for fiat, but did not succeed in this.” He has added:

“If Bitcoin were an alternative to fiat money, you could use it to buy groceries. Nobody buys products with bitcoins because it is too expensive and inconvenient.”

The former official has also criticized the comparison of BTC with gold. H hase pointed out that the precious metal “has a base value to use”, while in the case of Bitcoin it is “creating ransomware or something like that.” He has suggested:

“One of the risks associated with Bitcoin is that it could be subject to a lot more regulation, and I think that anonymity is also at risk.”

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