Former Fed Chair is confident Bitcoin will not ‘take over as alternate form of money’

There has been a lot of debate over Bitcoin’s viability as a medium of exchange since the flagship asset shot into the limelight in 2017. While many proponents of Bitcoin believe that the asset class is already revolutionizing financial transactions, some believe Bitcoin has a chance at replacing traditional fiat currencies.

In a recent appearance on CNBC, former Federal Reserve Chairman Ben Bernanke voiced his thoughts on whether digital assets could act as an alternate form of money amid the growing concerns of recession and rising prices of energy and food. He said:

Bitcoin and other currencies whose value changes minute to minute have been successful you see the downside of that right now. But they were intended to be a substitute for fiat money. In that respect, they have not succeeded. If they’re a substitute for fiat money, you can use your Bitcoin to buy groceries, nobody does that because it is too much convenience.

Like other government officials, Bernanke was quick to highlight Bitcoin’s use case in illicit activity, with the former exec claiming that the asset’s primary use is mainly for underground economy activities.

Bernanke goes on to caution investors who view Bitcoin as a store of value, noting that the cryptocurrency is a speculative asset and will be subject to “a lot more regulation.” However, renowned crypto advocate Anthony Pompliano quickly stepped forward to defend Bitcoin, slamming Bernanke for being biased.

Pompliano noted that the exec’s views are “factually inaccurate,” debunking the claim that Bitcoin is mainly used for illicit purposes.

We have people like the former acting director of the CIA who’s gone onto the blockchain analyze the transactions and come out to an estimation that point four percent of all transactions are for nefarious or illicit purposes.