US Democratic Senator Elizabeth Warren went on a rant against cryptocurrencies during a session of the Senate Banking Committee discussing a US government-backed central bank digital currency on Wednesday. Comparing decentralized crypto assets to a CBDC, the Senator said that crypto is a “fourth-rate alternative to real currency,” adding that “legitimate digital public money could help drive out bogus digital private money.”
“Crypto is a lousy investment.”
The irate Senator went on to call out pump and dump schemes and price manipulation where she fingered the meme-based cryptocurrency Dogecoin stating that “crypto is a lousy investment” compared to the stock market. The Massachusetts Senator also voiced her opinion on crypto-assets being tied to many illegal activities, all “made easier with crypto.” Concerning the recent ransomware attacks on Colonial Pipeline and JBS, Warren also suggested that cryptocurrencies were encouraging cybercrime. “Every hack that is successfully paid off with a cryptocurrency becomes an advertisement for more hackers to try more cyberattacks,” Senator mentioned.
Warren slams bitcoin for using too much energy.
Senator Elizabeth Warren later took on Twitter to continue her rant against bitcoin. Warren 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 Climate Crisis is to crack down on environmentally wasteful cryptocurrencies.” Earlier, Senator Roy Blunt unleashed a tirade on cryptocurrencies and the anonymity they provide over the weekend, referring to the recent crypto-ransomware attack. Bitcoin has gotten a lot of flak recently over using too much energy for its mining process. Many believe bitcoin mining is harming the environment and should be stopped. However, it is important to note that most bitcoin mining uses clean energy.