Ben Bernanke Talks The Future Of Cryptocurrency As Prices Crash
Former Fed Chairman Ben Bernanke sat down with CNBC to discuss the crash in the cryptocurrency market. One of the issues the crypto industry has faced is identifying a long-term use case for its product. At one time, many believed that cryptos and digital wallets could be used for those sending funds to families or friends in other countries. However, many of these recipients require cash, not value or money stored in a digital wallet.
The high number of competitors has led many to speculate who will survive this crisis. At this point nobody knows and represents a situation very similar to the dotcom bubble of the early 2000s. He doesn’t see Bitcoin as the future of money and thinks it’s too unreliable to replace the currencies that we currently use. Another problem for the currency, for Bernanke, is the fact that one of the main places Bitcoin is used is on the dark web or as a ransom payment mechanism.
Bernanke also talked about what the Federal Reserve will have to do to bring prices down. By raising rates, demand will slow, but he believes with current Presidents Powell who believe the economy is strong enough to withstand such drops in demand. Bernanke sees the economy stalling or slowing down this year, but does not currently believe a recession is imminent.