US Finance Minister Worries About Bitcoin Bubbles When The Fed Opens Up To Crypto Money

Janet Yellen warns of the dangers of crypto for investors and the public (Wired)

JAKARTA - Cryptocurrencies have continued to increase this week to reach Rp. 800 million per coin. In the midst of bitcoin's popularity, not a few observers doubt the increasing value of bitcoin that continues to craze.

Recently, the Minister of Finance of the United States (US) Janet Yellen, commented on the bitcoin phenomenon. Yellen also warned of bitcoin's effects for investors and the general public.

Yellen revealed that bitcoin's stability and legitimacy are still in question. He doubts the cryptocurrency as reported by CNBC International.

"I don't think that bitcoin ... will be used much as a transaction mechanism," Yellen said.

He also added that the cryptocurrency is often used for illegal transactions. Not only that, Yellen also said that bitcoin was not efficient as a transaction tool.

“So far (bitcoin) is used, I'm afraid a lot of it is used for illicit (illegal) finances. This is a very inefficient way to conduct transactions and the amount of energy consumed to process these transactions is also astonishing, ”said Yellen.

US Central Bank Learn Cryptocurrency Possibilities

On the other hand, to mine this cryptocurrency one must use a computer that has high capabilities. Not only that, miners also have to solve very complex mathematical equations.

Launching Digicomist, the electricity consumed for mining activities leaves a carbon footprint every year equal to the country of New Zealand. In addition, this crypto currency is also used for illegal acts so it is difficult to trace it.

Bitcoin is also very unstable, on the one hand cryptocurrency can skyrocket very high, but the value of bitcoin can also fall in unpredictable times.

“This is a very speculative asset. You know, I think people should be aware that this can be very unstable. I am worried about the potential losses that investors can suffer, ”said Yellen.

Until now, the possibility of virtual currency as an alternative means of payment in the future is still open. The US central bank, the Fed is studying this to serve as a global payment system in the future.