NEWS

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.

 

Related Articles

Leave a Reply

Your email address will not be published.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

Back to top button