US Treasury Secretary Yellen “Bitcoin is an extremely inefficient asset…

Input 2021.02.23 08:00 | Revision 2021.02.23 08:56

“An asset extremely inefficient to conduct a transaction”
Concerns over potential losses amid speculation fever
“Recognize that it is speculative and highly volatile”

US Treasury Secretary Janet Yellen criticized bitcoin, a cryptocurrency that surges day after day, as “an extremely inefficient asset.” After mentioning the possibility of tightening regulations on bitcoin in a recent media interview, the head of the US Treasury Department again publicly aimed at bitcoin.

Minister Yellen said at a’Dealbook Conference’ hosted by the New York Times (NYT) on the 22nd (local time), “I do not think that bitcoin, which is often used for illegal finance, will be widely used as a transaction mechanism.” “It’s extremely inefficient, and the amount of energy consumed in the transaction process is incredible.”

This pointed out that a huge amount of power is consumed in mining Bitcoin. Previously, CNBC broadcaster reported on the 19th that mining bitcoin requires solving complicated mathematical equations using a computer, and in this process, it consumes enormous power, which is similar to the annual consumption of New Zealand.

“People should be aware that Bitcoin is a very speculative asset and extremely volatile,” said Yellen. “We are concerned about the potential losses that investors may suffer.” In fact, bitcoin is often used for illegal financial transactions because it is difficult to track, and the price volatility is also high, raising concerns from financial authorities.

On the other hand, Bitcoin’s stature continues to rise. Recently, Tesla, a U.S. electric vehicle company, announced that it was recognized as a payment method, and the news that it made a profit of $1 billion in a month by investing in bitcoin became a topic around the world. Simple payment companies PayPal and Mastercard also announced plans to handle bitcoin as payment methods.

Expectations for Bitcoin’s’entering the institutional sphere’ immediately led to a price surge. On the 16th, it exceeded the 50,000 dollar mark for the first time since its publication in 2009. NYT said that under such circumstances, Minister Yellen directly raised issues on the efficiency and legality of Bitcoin, pointing out the side effects of the excessive speculation fever.

Meanwhile, instead of criticizing bitcoin, Minister Yellen actively emphasized its own digital currency, which is being prepared by the US central bank, the Federal Reserve System (Fed). “I think the so-called’digital dollar’ the Fed is talking about could be a faster, safer and cheaper payment method,” he said.