U.S. Federal Reserve Chairman, Jerome Powell has presumed that cryptocurrencies are speculative enterprises, and that the public needs to understand the risk associated with it.
Powell has identified the asset to be highly volatile and requires a substantial amount of energy.
As at the time of writing this news the following information was gathered;
Jerome Powell, U.S. federal reserve chairman has pointed out the risks associated with crypto trading; strictly emphasising on its level of volatility and energy Consumption. And that Coinbase's direct listing on Nasdaq inspired his comments.
During an interview with Jerome Powell at the Economic Club of Newyork, he spoke about the Cryptocurrency and linked it to Coinbase's IPO via a direct listing on Nasdaq.
He was equally worried about the impact initiated by bitcoin and cryptocurrencies on the economy and in addition to its rising popularity.
He broadened his opinion by comparing Cryptocurrency to gold with respect to its speculative nature, adding that "thousands of years human beings gave gold a special value that it doesn't have", noting that bitcoin and cryptocurrencies are similar to it and aren ot really actively used as payments.
Also Prowell's comments had earlier been supported by Janet Yellan's opinion in February, that bitcoin was highly speculative and widely used as a transmission mechanism that is extremely ineffective in the conduction of transactions.
Other important updates from the news are;
Prowell concluded that the digital dollar is a highly prioritized project for the U.S. He equally opined that Cryptocurrency is a substitute for gold and not the U.S. dollar and the public should equally understand the risk associated with its level of volatility and huge energy requirement for mining.
What are your thoughts about Jerome Prowell's view on bitcoin and cryptocurrencies?
