This week, CNBC published a headline that recently-appointed U.S. Secretary of the Treasury Janet “Yellen sounds warning about extremely inefficient bitcoin.” Ironically, two days later CNBC published another article because the Federal Reserve’s systems are down.
The article amplified her criticism of bitcoin’s value and energy consumption. The kicker is that it does so without actually comparing it to anything, which is absurd. So, here I am to address this one-sided journalism and lack of research.
”Treasury Secretary Janet Yellen issued a warning Monday about the dangers that bitcoin poses both to investors and the public,” CNBC reported.
It then noted that Elon Musk’s Tesla had purchased $1.5 billion worth of bitcoin before pivoting back to Yellen, reporting that she said “there remain important questions about legitimacy and stability.”
“I don’t think that bitcoin … is widely used as a transaction mechanism,” Yellen told CNBC.
To be able to report this statement, you might think CNBC would quantify Bitcoin’s total throughput, usually in comparison to something else, but perhaps that’s wishful thinking.
“I fear it’s often for illicit finance,” Yellen proceeded to tell CNBC. “It’s an extremely inefficient way of conducting transactions, and the amount of energy that’s consumed in processing those transactions is staggering.”
Let’s break this down…
“Illicit finance”: There is no comparison of bitcoin to another currency in regards to how often it is used for nefarious purposes. How much illicit financing is conducted with the USD? Or any other currency for that matter? How could you even begin to quantify that with the anonymity of cash?
“Extremely inefficient”: Once again, this lacks any comparison to even be deemed as so, and in reality is proven to be the opposite. Bitcoin is a bearer asset, not the echo of a paper IOU. It may take ten minutes and cost a little bit…