Bitcoin Mainly Used for “Underground” Activities, Not Suitable as Currency: Former Fed Chair
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Bernanke served two terms as the head of the US Fed between 2006 to 2014 and was succeeded by Jerome Powell, the current Fed Chair.
Commenting on the erratic nature of the price of the benchmark cryptocurrency and other cryptocurrencies, the economist noted that “They’ve been successful as a speculative asset.” However, he explained that “They were intended to be a substitute for fiat money,” arguing that “in that respect, they have not succeeded.”
He further noted: “If Bitcoin were a substitute for fiat money, you could use your Bitcoin to go buy your groceries. Nobody buys groceries with Bitcoin because it’s too expensive and too inconvenient to do that. Moreover, the price of groceries… varies radically day-to-day in terms of Bitcoin, so there is no stability either.”
Bernanke added:
“The main use of bitcoin is mostly for underground economy activities and often things that are illegal or illicit.”
The 14th Fed chair noted: “I don’t think bitcoin is going to take over as an alternative form of money.”
Regardless, the former Federal Reserve Chairman believes that the flagship crypto and cryptocurrency “will be around as long as people are believers and they want to speculate.”
Key Bitcoin Levels to Watch — May 17
BTC has entered into a slight recovery pattern as the benchmark cryptocurrency bounced above $30K. This defense of the $30K zone suggests that the bearish trend might have bottomed at $25K with the recent crash.
BTC now looks to re-enter the $41K – $31K pivot zone and slowly ease out of the bearish trend. However, the cryptocurrency could fall into a sideways pattern or a bearish correction in the coming days amid worsening global inflation and crashing equity markets.
Meanwhile, my resistance levels are at $31,000, $32,000, and $33,000, and my key support levels are at $29,000, $28,000, and $27,000.
Total Market Capitalization: $1.30 trillion
Bitcoin Market Capitalization: $577.3 billion
Bitcoin Dominance: 44.2%
Market Rank: #1
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