Bitcoin (BTC)

Former Fed Chair Janet Yellen: Bitcoin Is ‘Anything but Useful’

Janet Yellen Bitcoin

Janet Yellen, a Former U.S. Fed chair has once again downplayed Bitcoin as “anything but” a useful store of value. According to an Oct. 29, 2018, report by Kitco News, a Canadian financial news outlet, Yellen said that:

“It has long been thought that for something to be a useful currency, it needs to be a  stable source of value, and bitcoin is anything but. It’s not used for a lot of transactions, it’s not a stable source of value, and it’s not an efficient means of processing payments. It’s very slow in handling payments. It has difficulty because of its very decentralised nature,”

In Yellen’s opinion, coins like bitcoin are not considered legitimate currency because of their lack of ability to store value, and limited scope in everyday transactions.

Yellen and Crypto

Yellen gained fame among the cryptocurrency community since she was targeted by the “Buy Bitcoin” proponents while giving a testimony to Congress.

At a press conference in December 2017, Yellen referred to Bitcoin as a “highly speculative asset” and “not a stable source of value.” She also asserted that the Fed was not “seriously considering” the idea of state-issued digital currency at that time.

Yellen’s Cohorts

It is noteworthy that the declaration by Yellen also only echoes what other prominent economists have already said. Notably, economist Nouriel Roubini, an opinionated cryptocurrency naysayer who predicts the entire ecosystem failing, has also cast aspersions on bitcoin. At a Blockshow Conference in August, Roubini, like Yellen, argued that Bitcoin doesn’t satisfy the definition of money which is medium of exchange, a unit of value and store value.

Interestingly, in an interview with Forbes in August 2018, Roubini described blockchain technology as “Complete nonsense.” Moreover, he rubbished the Ethereum and ICOs saying:

“It’s a scam. The whole ICO industry is a scam. People are robbing, raising funds for projects with zero value”.

Recently, Wences Casares, the founder of Bitcoin wallet startup Xapo, said that Bitcoin might take years to be successful. While not sharing the same line of thought with Roubini and Yellen, he was uncharacteristically uncertain on the prospects of Bitcoin.

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