Hillary Clinton Warns Cryptocurrency Could Destabilize Nations, Undermine Dollar as World’s Reserve Currency

Hillary Clinton, former Democratic presidential candidate, spoke about cryptocurrency Friday at a panel discussion at Bloomberg New Economy Forum in Singapore.

Clinton addressed a variety of new challenges including artificial intelligence (AI) and disinformation. However, Clinton stated that ‘one more area I hope nation-states begin paying greater attention is the rise in cryptocurrency.

The former Secretary to State also added:

It seems like an interesting and exotic endeavor to literally mine coins to trade with them. This could lead to the undermining of currencies, the loss of the role the dollar has as the reserve currency, and the destabilization nations.

Clinton isn’t the only one who sees that cryptocurrency’s popularity could be a problem for the U.S. dollar. Trump, the former President, has stated several times that he doesn’t like cryptocurrency because it competes with the U.S. Dollar. He stated that he didn’t want other currencies to hurt or devalue the dollar.

Global investment bank Goldman Sachs warned in July that ‘Real concerns about the durability of the U.S. Dollar as a reserve currency are starting to emerge’

Stanley Druckenmiller , legendary fund manager, saidin May that he was worried that within 15 years, he would lose his reserve currency status. This is in addition to all the incredible benefits that it has brought.

Some people think that crypto will not replace USD as the world’s reserve money. Mohamed El-Erian is chief economic advisor to financial services company Allianz. He stated this week crypto “will always exist within the ecosystem, but it’s never going to be a worldwide currency. It won’t replace the dollar.

 

New Report Shows Why Bitcoin Will Probably Never Be A Viable Form Of Currency

A new study has shown that every single Bitcoin transaction, even buying a Flat White, consumes at least $100 of electricity.

The study was done by MoneySuperMarket and calculated the kWh transaction cost for various cryptocurrencies including Bitcoin, Ethereum Cash, Bitcoin Cash, Litecoins, Ethereum 2.0, Litecoin, Ethereum Cash, Litecoins, Ethereum 2.0, Dogecoin, and XRP.

For those who believe Bitcoin will be useful as a future transaction tool, the most alarming aspect of the study was this: Even small transactions like purchasing a chocolate bar or paying for lunch at the cafe require substantial amounts of electricity.

According to the report, each Bitcoin transaction consumes 1,173-kilowatt hour of electricity. This means that the average UK home could be powered for three months with an energy cost of approximately PS125 ($173) based on a fixed price of PS0.11 ($0.148/kWh), according to the study’s authors.

The authors also note that the U.S. equivalent would be approximately 6 weeks of electricity based upon an average household electricity consumption of 877 kWh per monthly (U.S Energy Information Administration).

Based on the 12 months of Bitcoin transactions, we calculate that the total energy consumption to be approximately 123 Terawatt hours (TWh), or 123 Billion kWh. This is equivalent to Norway’s annual energy consumption.

It is clear that Bitcoin will be used in the future as a store-of-value and an inflation hedge (much like gold), but not as a daily transaction tool.

While it is certainly a worthy competitor to the Grand Daddy in crypto markets, faster and more energy-efficient coins such as Ripple and Cardano (or if Elon Musk or Mark Cuban have their way, Dogecoin) and new coins that can even outperform the aforementioned sustainable currencies at their own game are likely to be used for transaction/currency purposes.

Bitcoin tops $60,000 for first time in six months as traders bet on ETF approval

Bitcoin surged above $60,000 on Friday as traders speculated that U.S regulators would approve the first bitcoin futures exchange traded fund.

According to Coin Metrics the world’s largest cryptocurrency rose more than 8% to $62,307 – its highest level since April. 17.

According to a source familiar with the matter, the Securities and Exchange Commission will allow trading to begin next week for the first U.S. Bitcoin futures exchange traded funds. This is a significant victory for a crypto industry that has been seeking permissions from Wall Street’s top regulator.

The person stated that the SEC is unlikely to block ETFs suggested by ProShares and Invesco. These ETFs are based upon futures contracts and were submitted under mutual fund guidelines, which SEC Chairman Gary Gensler believes offer investors substantial protection.

ProShares Bitcoin Strategy ETF is scheduled to make its debut at the New York Stock Exchange Tuesday. Experts believe that the SEC will not object to the product.

Last trading of the CME October futures contract was $60,570. This is an increase of about 4%.

The approval of an ETF that allows mainstream investors to access bitcoin would be a significant milestone for the crypto industry. It has been long pushing for greater acceptance for digital assets on Wall Street.

“The ETF news is being price in with the market anticipating an approval on Monday. CNBC’s Vijay Ayyar, Asia Pacific head at Luno cryptocurrency exchange, said that this is pushing the price up.

Ayyar warned that bitcoin could be sent to the ground if ProShares’ product is rejected.

Mikkel Morch (executive director of digital asset hedge fund ARK36) said that bitcoin could rise above its April high of near-$65,000 but warned that the cryptocurrency might experience a’short term pullback’.

Morch stated that investors should be aware of the possibility that the hope for a sustained rally over the $60K barrier, and further through the previous all time high, could turn into a ‘buy the story, sell the news’ scenario.

ETF news Friday did not give a boost to all cryptocurrencies. Ether, which is the second-largest cryptocurrency, rose 0.5% on spot exchanges to $3,804 However, both XRP (and ada) were down around 2%.

This year has been a wild year for Bitcoin and other cryptocurrency. In April, the number one digital coin reached an all-time high of $64,000. However, it fell sharply after a crackdown in China on the cryptocurrency market. Since then, it has experienced a resurgence and more than doubled its price this year.

As investors have increased their interest in crypto, regulators have taken a more aggressive stance on the matter. However, the industry has been fighting back with coinbase on Thursday calling for the U.S. government to create a new regulator in order to oversee digital assets.

This week, the Bank of England Deputy Governor Jon Cunliffe warned that cryptocurrencies could lead to a global financial crisis of the same magnitude as 2008’s crash.

Cunliffe stated Wednesday that when something is happening in the financial system, it’s important for financial stability authorities to take notice.

 

Donald Trump on Crypto: ‘I Don’t Want Other Currencies Coming Out and Hurting the Dollar

In an interview with Yahoo Finance’s Adam Shapiro published Monday, Donald Trump, former President of the United States, commented on the rising popularity of cryptocurrency and China’s crackdown on crypto.

Trump was asked: “You have a relationship to the Chinese President Xi Jinping. What do you think Xi Jinping has been up to? Is this good news for the U.S., or a crackdown on crypto? He responded:

He may want to create his own currency, crypto or not.

Many others, including the famous author of ‘Rich Dad Poor Dad,’ Robert Kiyosaki have also expressed concern that China is cracking down crypto to make way for its central bank digital currency, the digital yuan. Some see the Chinese government’s anti-crypto move as a positive sign for the U.S., including many lawmakers. noted Congressman Patrick McHenry that China’s decision to limit access offers a perfect opportunity for American leadership in cryptocurrency.

Trump commented on the rise in popularity of cryptocurrency. He said that one reason we need to be careful is that there is a currency right now: the dollar. The dollar is a great currency. I am a huge fan of our currency. He emphasized:

I don’t want other currencies to hurt or devalue the dollar.

“And China is certainly no looking to support the dollar. They’re currently based on the dollar, and would likely have to remain that way unless they do something very stupid in their country, the former president stated.

Trump cited ‘the horror at the border’ as well as ‘the terror show of the Afghan withdrawal’. He stated that ‘the problem I have…is our country’s loss of credibility. Trump elaborated, “If you look at a dollar-based monetary system, if your credibility starts to wane, you will lose that strong monetary sector.” We must be careful.

Trump has been an outspoken critic of cryptocurrency and bitcoin. He tweeted that he was still against bitcoin and other cryptocurrency while he was president of the United States. Illegal behavior such as drug trading and other illegal activities can be made possible by unregulated crypto assets.

He stated that bitcoin “seemed like fraud” and that he wouldn’t invest in it. At that time, bitcoin’s price was $6,000 Based on data from Bitcoin.com markets, Bitcoin.co was trading at $49K as of the writing. Trump warned in August that crypto could be a ‘potentially disastrous disaster waiting to happen’.

China declares all cryptocurrency transactions illegal

China intensified its crackdown on crypto trading Friday. They pledged to eradicate ‘illegal’ activity, hitting Bitcoin and other major currencies, and urging crypto and blockchain-related stocks.

In a joint statement, ten Chinese government agencies, which include the central bank, as well as foreign exchange and securities regulators, stated that they would cooperate closely to keep a ‘high pressure’ clampdown on cryptocurrency trading.

According to the People’s Bank of China, cryptocurrencies cannot circulate on markets like traditional currencies. Additionally, overseas exchanges are prohibited from offering services to mainland investors via internet.

The PBOC also prohibited financial institutions, payment companies, and internet firms from facilitating cryptocurrency trades.

These moves follow a May vow by China’s State Council (or cabinet) to crack down bitcoin mining and trading in an effort to reduce financial risk. This led to a significant sell-off in cryptocurrencies.

According to the PBOC, the Chinese government will’resolutely clampdown on virtual currency speculation and related financial activities and misconduct in order to protect people’s property and maintain economic, social, and financial order.’

The latest move saw bitcoin, the largest cryptocurrency in the world, drop over 6 percent to $42,2167. It had previously been down around 1%.

Coins smaller than bitcoin also fell, as they tend to rise and fall with bitcoin. Ether dropped 10 percent, while XRP fell a similar percentage.

Joseph Edwards, Head of Research at Enigma Securities, London, said that there is a sense of panic. “Crypto is still legal in China in a gray area.”

This move also affected cryptocurrency and blockchain-related shares.

Premarket trading saw Bit Digital, Marathon Digital, and Riot Blockchain, U.S.-listed miners, slip between 6.3 percent to 7.5 percent China-focused SOS fell 6.1 percent, while San Francisco’s crypto exchange Coinbase Global dropped 3.4 percent.

According to the National Development and Reform Commission (NDRC), it is launching a nationwide clean-up of cryptocurrency mining. It stated that such activities do not contribute to China’s economic growth and are a source of risks. They also consume large amounts of energy and hinder carbon neutrality goals.

The NDRC stated in a notice to local authorities that it is an ‘imperative to eliminate cryptocurrency mining. This task is crucial to promoting high quality growth in China’s economy.

Before the crackdown began earlier this year in China, virtual currency mining was a huge business. It accounts for more than half the world’s crypto supply.

According to the NDRC, it will collaborate with other government agencies to ensure that financial support and electricity supply are not cut off for mining. The national planning body urged local governments for a timetable and road map to end such activities.

Local governments had previously placed restrictions that paralyzed the mining industry. Miners abandoned their machines in despair and sought refuge in Texas or Kazakhstan.