Yellen sounds warning about ‘extremely inefficient’ bitcoin –

Yellen sounds warning about ‘extremely inefficient’ bitcoin


Treasury Secretary Janet Yellen issued a warning Monday about the dangers that bitcoin poses both to investors and the public.


Despite a sharp slide in price to start the week, the cryptocurrency continues to trade above $53,000; as it has received boosts from various sources.


Elon Musk’s Tesla recently made a substantial purchase and has said it will accept bitcoin for transactions.

However, Yellen said there remain important questions about legitimacy and stability.


“I don’t think that bitcoin … is widely used as a transaction mechanism,” she told CNBC’s Andrew Ross Sorkin at a New York Times DealBook conference.


“To the extent it is used I fear it’s often for illicit finance. It’s an extremely inefficient way of conducting transactions; and the amount of energy that’s consumed in processing those transactions is staggering.”


Mining bitcoin requires users to solve complex mathematical equations using high-powered computer setups.


The electric consumption used in the process leaves an annual carbon footprint equal to the nation of New Zealand; according to Digiconomist.


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