Bitcoin

Finance officials criticize cryptocurrencies during Coinbase celebrations

Tax officials on both sides of the world are taking the opportunity to do so criticize the value and usefulness of cryptocurrencies as media attention to the space afterwards Coinbase’s direct listing on the Nasdaq.

The Governor of the Bank of Korea, Lee Ju-yeol, These cryptocurrencies had “significant restrictions” as a payment methodAfter a monetary policy meeting on Thursday, the local news agency KBS World reported.

While claiming that cryptocurrencies are difficult to accurately value because of their volatile price fluctuations, Lee said the BOK has not changed its stance, that it has no intrinsic value.

Finance officials criticize cryptocurrencies during Coinbase celebrations
Finance officials criticize cryptocurrencies during Coinbase celebrations

Lee also referred to Federal Reserve Chairman Jerome Powell, and noted that the head of the Fed shared his feelings about the crypto room.

Hours before, Powell stated in a virtual interview with the New York Economic Club that cryptocurrencies are purely speculativeand added that they had not simply been adopted as a means of payment.

“They are really speculative. In reality, they are not actively used as payments. “Powell said, according to CNBC.

Given Powell and Lee’s comments, is the recent introduction of cryptocurrencies by the major global payment processors. Visa, Mastercard and PayPal have started implementing crypto payment options in the past few monthswhile Tesla introduced Bitcoin (BTC) as a payment option for your electric car business.

That’s not to say that Bitcoin and other cryptocurrencies are somewhat secure when it comes to payment methods.. Bitcoin’s average transaction fee is currently around $ 30 due to the limited block size and the resulting network congestion. Therefore, Payment processors are often forced to consume such transaction fees as a business expense until they can no longer afford themas was the case with the Steam gaming platform in 2017.

One point shared by Powell and the crypto community is the suggestion to compare cryptocurrencies to gold, but for very different reasons.. Proponents of crypto (especially Bitcoin) argue that like a precious metal, the technology can be used as a long-term store of value.

Powell wanted the comparison to be ridiculous, however. The Fed President’s opinion on gold doesn’t seem to be any better than that of cryptocurrencies.

“For thousands of years people have given gold a special value that it doesn’t have”said the president of the American Fiat printing center.

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