Former Fed Chair Bernanke: Bitcoin Is Mainly Used in Underground Economy for Illicit Activities – Featured Bitcoin News – Bitcoin News

by Kevin Helms
Former Federal Reserve chairman Ben Bernanke says the main use of bitcoin is “mostly for underground economy activities and often things that are illegal or illicit.” He added, “I don’t think bitcoin is going to take over as an alternative form of money.”

Former Federal Reserve chairman Ben Bernanke shared his view on bitcoin and other cryptocurrencies in an interview with CBNC Monday.
Bernanke is an economist who served two terms as the chairman of the U.S. Federal Reserve, from 2006 to 2014. He oversaw the Fed’s response to the late 2000s financial crisis during his tenure as chairman.
Noting that the values of bitcoin and other cryptocurrencies change minute-to-minute, he said Monday:
They’ve been successful as a speculative asset.
However, he pointed out that “They were intended to be a substitute for fiat money,” adding that “in that respect, they have not succeeded.”
He continued: “If bitcoin were a substitute for fiat money, you could use your bitcoin to go buy your groceries. Nobody buys groceries with bitcoin because it’s too expensive and too inconvenient to do that. Moreover, the price of groceries … varies radically day-to-day in terms of bitcoin so there is no stability either.”
He opined:
The main use of bitcoin is mostly for underground economy activities and often things that are illegal or illicit.
Bernanke further said:
I don’t think bitcoin is going to take over as an alternative form of money.
Nonetheless, he expects that bitcoin and cryptocurrencies “will be around as long as people are believers and they want to speculate.”
When asked if BTC is a store of value or digital gold in his opinion, Bernanke insisted that “it is a speculative asset.”
What do you think about the comments by Ben Bernanke? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Today’s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits
As the crypto economy hovers just under $2 trillion in value, application-specific integrated circuit (ASIC) mining devices are making decent profits. While ASIC miners can still mine ethereum, a 1.5 gigahash (GH/s) Ethash mining device can rake in $51.58 per … read more.
Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days
Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized … read more.

Check all the news here


Leave a Reply

Your email address will not be published. Required fields are marked *