Ex-Federal Reserve Chair Questions Bitcoin's Measure Of Value Again
The decentralization nature of the crypto has been cited as the main reason behind the uncertainty.
Janet Yellen Tears Into Bitcoin Once Again
Janet Yellen has again questioned bitcoin’s usefulness in acting as a key store of value. Yellen once served as the American Federal Reserve's chairperson. She made the remarks during a forum on Monday in Canada.
Yellen was speaking during an interview on the sidelines of the Canada FinTech Forum. She gained prominence among crypto lovers back in 2017 as a hit point for the infamous Buy Bitcoin session at a Congress meeting. She doubled down on her past anti-bitcoin stand.
According to Yellen, it obvious that for anything become a useful currency, it must first of all show stability as a source of value. She stated that bitcoin has not exhibited this characteristic.
She added that the decentralization of bitcoin poses a number of challenges. The few transactions in bitcoin and time spent to process payments by bitcoin are some of the factors related to the decentralized nature. Yellen stated that inefficiency in processing payments by Bitcoin can also be blamed on the decentralized nature.
Yellen remarks received varied reactions from key market players. Immediately after the statement, Satoshi Portal boss Francis Pouliot distanced himself from Yellen’s stance. Through his social media accounts, Pouliot said that Yellen’s words can be classified as non-player-character rules to bitcoin fud. Pouliot was taking part in the Montreal Forum.
Speaking during a press event last year, Yellen boldly stated that bitcoin was a speculative digital asset and unstable when it comes to storing value. She added that the federal government lacked interest in rolling out a cryptocurrency issued by the state.
Her Monday remarks are similar to her previous stand when it comes to cryptocurrencies. Yellen’s sentiments have been echoed by Nouriel Roubini, a controversial economist who predicted the 2008 economic meltdown. Speaking early this month Roubini stated that the entire crypto ecosystem will crumble soon.
Cryptocurrency sector commentators have challenged Roubini’s stance stating that he has no basic understanding of a decentralized crypto. They have accused him of coming up with misleading conclusions. He maintained that he foresees a bubble in the sector coming at anytime.