Cryptocurrency Bitcoin is increasingly soaring in line with the spotlight of well-known companies such as Tesla and Mastercards. The growing popularity has finally opened the voice of the United States Finance Minister Janet Yellen. She gave a warning that bitcoin could endanger investors and the public.
Despite a sharp drop in price for bitcoin earlier this week, this cryptocurrency continues to be at the level of US $ 53,000 and above, or around Rp. 800 million per chip. This happened as a result of encouragement to buy from many sources, including Tesla boss, Elon Musk.
Quoted byCNBC International, Yellen said that there are still many important questions about the legitimacy and stability of bitcoin. This made him doubt it.
“I do not think that bitcoin will be widely used as a transaction mechanism,” he told a conference in the US, quoted Tuesday (23/2/2021).
“As far as (bitcoin) is used, I’m afraid it’s being used a lot for ‘illicit finance’ (illegal). It’s a very inefficient way of making transactions and the amount of energy consumed to process those transactions is also staggering.”
Bitcoin Can Be Misused For Illegal Transactions
Bitcoin mining requires users to solve complex mathematical equations using high-powered computer settings. According to Digicomist, the consumption of electricity used in the process leaves the same annual carbon footprint as New Zealand.
Apart from consumption issues, bitcoin is also considered a tool for those involved in a number of illegal activities due to its use which is difficult to trace. Then there is the volatility, because cryptocurrency prices can suddenly hit a ‘peak’ and then suddenly fall down.
“This is a very speculative asset. You know I think people should be aware that this can be very volatile. I am worried about the potential losses investors can suffer,” Yellen said.
Meanwhile, various government agencies have been thinking about the idea of making a digital currency as an alternative in the future. The hope is to open up a global payment system for those who don’t have access.
The Fed, the US central bank for example, is studying this. Officials discussed the possibility of a new digital currency along with a payment system that is expected to launch in the next few years.
Bitcoin is in the spotlight of many people after Tesla and SpaceX founder Elon Musk praised the cryptocurrency. So that the price continues to surge to a record high.