The Fed Boss Panic, Cryptocurrencies Are Getting Crazier

Cryptocurrency values skyrocket, The Fed is nervous (Zephyrnet)

JAKARTA - The soaring prices of bitcoin and other cryptocurrencies have attracted the interest of many people. Unlike traditional (fiat) money, this cryptocurrency is decentralized, aka no party can regulate the price of the cryptocurrency. So it's not like fiat which is regulated by the world's central banks.

This phenomenon made Jerome Powell as Governor of the Central Bank of the United States (US), the Federal Reserve (The Fed) issued a statement regarding the increase in cs bitcoin transactions due to the proliferation of large companies opening up to crypto money.

Jerome Powell seems to be getting restless. He said that crypto money is only speculative.

“Cryptocurrency is truly a vehicle for speculation. They're not really being actively used as payments, ”said Powell in an interview conducted by David Rubenstein, co-founder of the Carlyle Group.

The Fed boss also compared the value of cryptocurrencies to gold. According to him, humans have valued gold specifically for thousands of years.

"For thousands of years, humans have given gold a special value it doesn't get as an industrial metal," Powell said as quoted by CNBC International, Thursday, April 15.

On Wednesday, bitcoin itself broke the highest price of all time, reaching 64 thousand US dollars per coin. Previously, a number of companies have accepted payments in bitcoin, one of which is Tesla. Now, bitcoin owners can buy Tesla electric cars.

Recently, a cryptocurrency trading platform, Coinbase, reportedly took the floor on the Nasdaq and opened an IPO. On the other hand, US Treasury Secretary Janet Yellen warned the public about the dangers of bitcoin. For Yellen, the position of bitcoin still has to be questioned, especially regarding its stability. This raised doubts in him.

"I don't think that bitcoin ... will be widely used as a transaction mechanism," Yellen added in a conference held in February.

“So far (bitcoin) is used, I'm afraid a lot of it is used for 'black money' (illegal). It is a very inefficient way to conduct transactions and the amount of energy consumed to process those transactions is also astonishing, ”he added.