During a hearing on Wednesday for the Senate Banking, Housing and Urban Affairs Committee’s Subcommittee on Economic, Democrat Senator Elizabeth Warren blamed Bitcoin and other cryptocurrencies for climate change.
“Cryptocurrency has created opportunities to scam investors, assist criminals and worsen the climate crisis,” Warren said at the hearing. “The threats posted by crypto show that Congress and federal regulators can’t continue to hide out, hoping that crypto will go away. It won’t. It’s time to confront these issues head-on.”
Warren doubled down on her insane rhetoric on Twitter: “Bitcoin requires so much computing activity that it eats up more energy than entire countries. One of the easiest and least disruptive things we can do to fight the #ClimateCrisis is to crack down on environmentally wasteful cryptocurrencies,” she tweeted.
Bitcoin requires so much computing activity that it eats up more energy than entire countries. One of the easiest and least disruptive things we can do to fight the #ClimateCrisis is to crack down on environmentally wasteful cryptocurrencies. pic.twitter.com/derGr1bjuq
— Elizabeth Warren (@SenWarren) June 9, 2021
Twitter users blasted Warren on Twitter. Check out some of the reactions below:
If we’re gonna start moralizing energy use, perhaps we should start by using Zoom instead of private jets. pic.twitter.com/lQ43TP20i7
— BTC Sessions 😎 (@BTCsessions) June 10, 2021
Here’s a picture of John Thain’s house.
The was one of the biggest recipients of TARP bailout bonus money when Warren was TARP administrator.
Now Warren is once again going to bay for her banker cronies because geeks have invented better money.
Senator, you are a fraud. pic.twitter.com/Q20nifMp1M
— Bruce Fenton (@brucefenton) June 9, 2021
This video reveals who you work for. The central bankers. Youve completely lost the plot.
— Christopher Franko (@chrisjfranko) June 9, 2021
Senator please educate yourself and your staff on this issue before you make general sweeping statements. pic.twitter.com/cqvK1gLdiU
— thecryptosheet.com (@thecryptosheet) June 9, 2021
You will lose, despot.
— nic carter (@nic__carter) June 9, 2021
Your position on Bitcoin is extremely uniformed.
Bitcoin does not use any energy for transactions. The energy is used to secure the network. Just like the US military is used to secure the network of the US dollar. Which consequently uses far more energy then bitcoin.
— Anthony vonHodl🟩 (@AnthonyDessauer) June 9, 2021
This is embarrassingly misinformed.
Either @SenWarren hasn’t bothered to learn anything about crypto, or she is deliberately lying about crypto to protect a fiat-printing system that continually debases the value of poor people’s savings & pensions.
— Geoffrey Miller (@primalpoly) June 9, 2021
Read more about the hearing on cryptocurrency below as reported by Mass Live:
During the hearing, Warren questioned Dr. Neha Narula, director of the Digital Currency Initiative at the Massachusetts Institute of Technology, and Lev Menand, lecturer at Columbia Law School.
One highlight from their conversation occurred when Warren asked Narula if the cryptocurrency system was stable and reliable to which Narula responded, “No it is not, unfortunately. We just witnessed the value of the entire cryptocurrency ecosystem dropping by about 40% over the course of the last two months.” That 40% was equivalent to $1 trillion, according to Warren.
Warren gave an example of this impact saying, “It means the grocery store could take $100 in bitcoin to pay for groceries, but by the end of the day, the bitcoin could be worth only $60, in which case the store loses out.”
Warren also talked about the stability of Dogecoin.
“In just the last two months, the value of Dogecoin increased by more than ten-fold and then declined by nearly 60%,” Warren. “Now that may work for speculators and fly-by-night investors, but not for regular people who are looking for a stable source of value to get paid in and to use for day-to-day spending.”
In the hearing, Warren acknowledged that the banking system has traditionally cut out Americans, specifically people of color, citing 33 million households that are underbanked or unbanked.
Warren turned to Menand to ask if cryptocurrencies offer a safer alternative to the traditional banking system for consumers, in the context of how the banking system is was failed people in the past.
“No, Senator, absolutely not, the crypto market is rife with consumer abuses. You know in the traditional financial space we have regulations and consumer protections in place. Both don’t apply in the crypto markets so there are companies that offer crypto custody services that have lost customers’ money,” Manand responded. “There’s a lot of players that manipulate prices which lead ordinary users stuck paying high fees. It’s not a safe place to keep your money or to invest.”
In the hearing, Warren also discussed criminal activity surrounding cryptocurrency.
“Online theft, drug trafficking, ransom attacks and other illegal activity have all been made easier with crypto. Experts estimate that last year more than $412 million was paid to criminals in ransom through cryptocurrencies,” Warren said.
Last, the senator talked about the environmental impacts of crypotocurrecy saying that a single bitcoin transaction — one purchase, or one sale, or one transfer — uses the same amount of electricity as the typical U.S. household uses in more than a month.
Menand said that the environmental costs of cryptocurrency do not outweigh the benefits specifically mentioning that, “They undermine the government’s ability to maintain robust economic growth over time.”
The point of Warren’s hearing was to say that central bank digital currency is preferable to cryptocurrency saying it, “has great promise.” The idea of CBDC is to serve as a public alternative to cryptocurrencies.
According to Menand, CBDC’s would be sovereign non-defaultable money, that is cheaper to use and would not be subject to bankrupt dynamics.
Warren agreed saying, “Legitimate digital public money could help drive out bogus digital private money. It could help improve financial inclusion, efficiency and the safety of our financial system — if that digital public money is well-designed and efficiently executed, which are two very big ‘if’s.’”
Meanwhile, as Warren tries to discourage cryptocurrency in the U.S., El Salvador recently adopted Bitcoin as a legal tender earlier this week.
What are your thoughts? Let us know in the comments below!
ARTICLE SOURCE : TRENDINGPOLITICS.COM