Warren described digital currencies as “fourth-rate substitutes to genuine bitcoin,” calling crypto “a bad investment.” She also said that cryptocurrency is a “safe haven for unlawful conduct.” Warren went on to discuss the price fluctuations of cryptocurrencies and how she feels they are detrimental to the economy.
Dogecoin rose more than tenfold in two months, as per the senator, before plummeting by 60%. Crypto may fit aggressive traders, but it is unsuitable for consumers seeking regular value propositions to receive payments or spend on a daily basis, according to her.
Despite her criticisms of Bitcoin and Dogecoin in particular, Warren stated that practically all cryptocurrencies are quite volatile. As a result, she believes that crypto is a tough medium of trade to evaluate. She went on to say that cryptocurrencies require stricter rules since they are now both a bad investment and a nightmare for the ecosystem.
She went on to say that the authorities should talk to the US Securities and Exchange Commission (SEC) about crypto legislation. Warren stated the subject of integrating Bitcoin and other cryptos into the financial system, as well as banks holding BTC, should be explored with banking authorities.
Warren also spoke about the lack of safety that crypto investors face. Clients are powerless in the face of frauds, she claims, because there are no consumer safety laws in place. Every effective hack by fraudsters, she claims, serves as a “advertorial” for additional fraudsters to steal people’s wealth. Warren also addressed the high power use of Bitcoin and other cryptocurrencies.
She went on to say:
“Bitcoin uses more energy than whole countries combined. This year, it is expected to consume as much electricity as all of the world’s data centers combined. A single Bitcoin transaction, such as a buy, sell, or transfer, consumes the same amount of energy as a normal US home consumes over the course of a month.”
U.S. Senator Elizabeth Warren says cryptocurrencies need more regulation.
“What’s happening right now…it’s a Wild West out there," @SenWarren tells @TheStalwart on @BloombergTV
More on @crypto: https://t.co/kW75EqxgK7 pic.twitter.com/yeVKB0nd3P
— Bloomberg Crypto (@crypto) June 10, 2021
Tesla CEO Elon Musk has already chastised Bitcoin for its energy use, prior to Warren’s remark. Musk, like the senator, claims that Bitcoin’s energy use is damaging to the ecosystem.
As a result of Musk’s remark, Bitcoin fell sharply, leading the crypto market meltdown last month. Simultaneously time, a Cambridge University study disclosed new information on Bitcoin’s energy use. According to the study, Bitcoin’s yearly energy use is greater than Argentina’s total energy use.
Despite all the negative press surrounding Bitcoin and other cryptocurrencies, Warren is in favor of the US-backed digital money that is regulated. “Genuine digital public money may assist in the eradication of phony virtual private money. If that digital public money is well-structured and effectively delivered, which are two very significant ‘ifs,’ it may significantly increase financial inclusion, productivity, and the security of our financial system.”