In an interview with’s this Week, Ben Bernanke, the former Federal Reserve Chair, criticized crypto, stating that they were not intended to replace fiat money.
According to Bernanke, we are’seeing the downside’ of crypto right now, despite its success as a speculative investment.
He said that Bitcoin could be used to buy groceries if fiat money was no longer available. “Nobody buys groceries using Bitcoin because it is too costly and too difficult to do so.
Bernanke stated that Bitcoin can be used to fill cavities, comparing it to gold. To runsomware is the underlying value of Bitcoin.
Former central bank chair highlighted the increasing risk of state crackdowns.
These comments aside, Bernanke, who was the Fed’s chair, saw crypto’s potential almost ten years ago.
Bernanke stated that crypto “may hold long-term potential, especially if the innovations promote faster, more secure, and more efficient payments systems.”
Bitcoin: Gold or tech stocks?
One of the most common narratives about Bitcoin, as pushed hard by so called Bitcoin maximalists is that the top cryptocurrency offers a store-of-value, similar to digital gold.
Some of Bitcoin’s most prominent advocates have held this view at one time or another, such as, and Bitcoin HODLingMicroStrategy CEO Michael Saylor.
Reporting from Arcane Researchlast months shows that Bitcoin’s 30-day correlation with the NASDAQhas risen to its highest level since summer 2020. However, the cryptocurrency’s relationship with gold is close to an all-time low.
If crypto developers cannot find and promote crypto-filled cavities, then the maxis will have other arguments to win us over.