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HomeBTCBitcoin is used for illegal activities in underground economy: Ben Bernanke

Bitcoin is used for illegal activities in underground economy: Ben Bernanke

Ben Bernanke, Former Federal Reserve Chairman said that bitcoin is largely used for underground economic activities and often illegal or criminal things. I don’t believe bitcoin will take over as an additional form of money.

Ben Bernanke on Bitcoin

In an interview, former Fed chairman Ben Bernanke discussed bitcoin and other cryptocurrencies.

Ben Bernanke is an economist, he served as Chairman of the Federal Reserve for two terms, between 2006 to 2014. During his term as chair, he oversaw the Federal Reserve’s reaction to the financial crisis of the late 2000s.

“If bitcoin becomes a fiat money alternative, people might use it to buy groceries,” he concluded. Nobody buys groceries using bitcoin because it’s too costly and complicated. Furthermore, in terms of bitcoin, the price of goods changes dramatically from day to day, so there is no consistency.”

Ben Bernanke believes that bitcoin is mostly used for underground economic operations and is often an unlawful or criminal activity. Bernanke also continued that; bitcoin will not succeed as an alternative method of payment.

Nonetheless, he believes bitcoin and other cryptocurrencies will be there as long as people believe in them and want to speculate. Bernanke said bitcoin is “a speculative investment” when asked whether it is a store of wealth or virtual gold in his perspective.

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