Ben Bernanke speaks to future of cryptocurrency as prices tank
Former Fed Chairman Ben Bernanke sat down with CNBC to discuss the collapse in the crypto-currency market. One issue that the crypto industry has faced is identifying a long-term use case for their product. At one point, many thought that cryptos and digital wallets could be used for those who send remittances to families or friends in other countries. However, many of these recipients need cash, not value or money stored in a digital wallet.
The high number of competitors has led many to speculate as to which will make it through this crisis. At this point, no one knows, and represents a very similar situation to the dot com bubble in the early 2000s. He does not see that Bitcoin as the future of money and thinks that it is too unreliable to take the place of the currencies we use now. Another problem for the currency, for Bernanke, is the fact that one of the major places Bitcoin is used is on the dark web or as a mechanism to pay ransom.
Bernanke also spoke about what the Federal Reserve will have to do to bring down prices. By raising rates demand will slow, but he believes with current Chairmen Powell who thinks the economy is strong enough to withstand such decreases in demand. Bernanke does see that a stall or slowing in the economy could come this year, but does not currently believe that a recession is emminante.
