TL;DR Breakdown
- Janet Yellen said on Monday that Bitcoin is highly volatile and an inefficient way for transactions.
- Robert Kiyosaki argued that the massive US dollar printing was not efficient either, but makes Bitcoin more valuable.
On Monday, Janet Yellen, the United States’ Treasury Secretary, issued a warning about the largest digital currency, Bitcoin. She warned the public and BTC investors about the dangers of using the cryptocurrency, adding that it’s an inefficient medium for making transactions due to “extreme volatility.” The author of the popular Rich Dad Poor Dad book, Robert Kiyosaki, responded to her comment, saying massive printing of the US dollar wasn’t efficient either. Rather, it makes the cryptocurrency more valuable.
Janet Yellen warning about Bitcoin
As CNBC reported, the US Treasury Secretary opined that Bitcoin’s legitimacy and stability are questionable, owing to its properties. At first, Yellen explained that the cryptocurrency is becoming a preferred tool for malicious actors due to its anonymity feature. Also, Bitcoin mining consumes a massive amount of energy. Yellen also voiced her concern about the crypto’s extreme volatility. According to her, Bitcoin is “a highly speculative asset,” and investors can suffer losses on it.
“I don’t think that Bitcoin … is widely used as a transaction mechanism. To the extent it is used I fear it’s often for illicit finance. It’s an extremely inefficient way of conducting transactions, and the amount of energy that’s consumed in processing those transactions is staggering,” Yellen told CNBC’s Andrew Ross Sorkin.
Robert Kiyosaki – Is printing trillions of fake dollars efficient?
In response to the Secretary’s statement that the leading cryptocurrency is extremely inefficient, Robert Kiyosaki responded by asking if the massive printing of US dollars was efficient. Robert Kiyosaki added that massive printing of the currency rather makes Bitcoin more valuable and efficient. He precisely wrote on Twitter:
“Sec Treasury Janet Yellen states: “Bitcoin is extremely inefficient.” Give me a break. Does she think printing trillions of fake dollars is efficient? Does she not know the more fake dollars she prints, the more efficient and valuable Bitcoin becomes? God bless her.”
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