Ben Bernanke talks about the future of cryptocurrencies as a price tank
Former Fed Chairman Ben Bernanke talked with CNBC about the collapse of the crypto market. One of the challenges facing the crypto industry is identifying long-term use cases for its products. At some point, many thought that cryptography and digital wallets could be used for people sending money to family and friends in other countries. However, many of these recipients need cash, not the value or money stored in their digital wallet.
Due to the large number of competitors, many are speculating on whether this crisis can be overcome. At this point, no one knows, and it represents a situation very similar to the dot-com bubble in the early 2000s. He doesn’t see Bitcoin as the future of money, and he thinks it’s too unreliable to replace the currency we’re currently using. Another issue with currencies is the fact that for Bernanke, 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 must do to lower prices. Raising interest rates will slow demand, but he believes the current Chairman Powell believes the economy is strong enough to withstand such a decline in demand. Bernanke believes that a stagnation or slowdown could occur this year, but currently does not believe that a recession is imminent.
