In-depth interpretation of U.S. Treasury Secretary Yellen’s views on Bitcoin
Yesterday, the U.S. Treasury Secretary, Yellen participated in an online event organized by the New York Times. During the intense discussion, she mentioned her views on Bitcoin, the US debt issues, and the corporate tax issues that is highly concerned by the market.
Yellen believes that using Bitcoin for transactions is an “extremely inefficient way” and that processing these transactions consumes astonishing energy. Bitcoin is still considered as a “highly speculative asset”. Although token may bring a faster and cheaper payment experience, “there are many issues that must be studied in depth, including the two major issues of anti-money laundering and consumer protection.”
Yellen’s criticism caused Bitcoin to plummet by more than 17% at the beginning of the US stock market and fell below US$48,000.
At the same time, she said that it is meaningful for the Federal Reserve to study the issuance of tokens, which may become a faster, safer, and cheaper payment method.
In fact, based on Yellen’s views, we can see that Yellen has a positive attitude towards the token development. However, the high energy consumption of Bitcoin has been questioned by Yellen. This is due to Bitcoin’s flaws, which is the adoption of the POW consensus mechanism.
In addition, the instability of Bitcoin has indeed led to a high degree of speculation, and ultimately become a tool for the rich. So, Yellen’s comments on Bitcoin’s speculative nature are not entirely false. If Bitcoin wants to get rid of speculative nature, in my opinion, the first thing to do is to reduce the holdings of large investors.
As we all know, Bitcoin is still a carnival for some people. Wall Street giants and major institutions in various countries hold many Bitcoins, but this also makes Bitcoin to face a risk, that is, the selling pressure from big investors. If they decide to no longer hold bitcoins and switch to other assets, then there will be many bitcoins selling in the market, which will lead to the crash of Bitcoin prices. As a result, the retail investors who do not have much capital will encounter losses.
In fact, it is believed that instead of discussing the shortcomings and uncertainty of Bitcoin, it is better to look for the alternatives of Bitcoin. After all, Bitcoin is not the only token in the cryptocurrency market. The tokens issued on the main chain of the NGK blockchain are good choices as well.
Whether it is the NGK native tokens, BGV governance tokens, or the new SPC star tokens and VAST tokens, they all operate under the consensus mechanism of DPOSS, with low energy consumption and low handling fees. At the same time, the NGK project team has already formulated corresponding rules during the construction to avoid the risk of selling pressure by large players. At the same time, the NGK has low market entry barrier, allowing many ecological builders with small capital to enter.
Therefore, for a long period of time in the future, the NGK blockchain will continue to undergo continuous innovation and improvement, and the market will continue to expand. It is believed that more users and institutions, and even countries will understand the NGK blockchain and the tokens on its chain. Perhaps, by then, Bitcoin will not be the most discussed token in the blockchain market, but the related tokens launched by the NGK blockchain instead.