US Senator Elizabeth Warren sees several problems with Bitcoin and other cryptocurrencies. She said that “we need a good, strong regulator that can continue to be updated,” claiming that cryptocurrencies “invite investors to enter without the usual protections of transparency, disclosure and scrutiny.”
Elizabeth Warren Bashes Bitcoin and Other Cryptocurrencies
Elizabeth Warren, the U.S. Senator from Massachusetts, was asked about cryptocurrency and bitcoin and how they should be regulated in an interview with Andy Serwer of Influencers on Yahoo Finance Thursday.
Recalling that Warren had previously said Bitcoin was speculative and could end badly, Serwer asked how cryptocurrencies should be regulated and if they should be regulated at all.
“That’s a good question,” replied Senator Warren. “I did it again with the SEC [U.S. Securities and Exchange Commission]This is a reminder of why we need a good, strong regulator that can continue to be updated. You know, the last time we wrote … how money works safely was long before something like cryptocurrency came out. “
It’s not just bitcoin. It is one at a time that invites investors to enter without the usual protections of transparency and disclosure and scrutiny that you get when a regular company offers its shares for trading in the market.
The senator then turned to the environmental issues often associated with Bitcoin. She means:
I also think that Bitcoin and the other cryptocurrencies have a real problem in terms of environmental impact.
“This whole idea of how much energy is used to keep currency tracking up, you know, you don’t use that kind of energy to put money in a bank or mutual fund,” she added.
Warren concluded, “In that sense, Bitcoin is very different. And in the 21st century we are becoming much more sensitive to the global effects of our decisions. “
Because Bitcoin wastes so much energy, a number of people have released research that debunk the claim. For example, in its report debunking several claims about Bitcoin, Ark Invest wrote that “Bitcoin’s energy use is more efficient than that of gold and traditional banks,” emphasizing, “Contrary to consensus, we believe that the environmental impact of Bitcoin Mining different are minimis. “
The company stated, “Traditional banking consumes 2.34 billion gigajoules (GJ) per year and gold mining consumes 500 million GJ, while Bitcoin consumes 184 million GJ, less than 10% and 40%, respectively, of traditional banking and gold mining. Additionally, the estimated dollar cost of Bitcoin mining per FY spent is 40 times more efficient than traditional banking and 10 times more efficient than gold mining. “
What do you think of Senator Elizabeth Warren’s comments on Bitcoin and other cryptocurrencies? Let us know in the comments below.
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