The acclaimed author of Rich Dad Poor Dad refutes U.S. Treasury Secretary Janet Yellen's call for caution amid a Bitcoin bull rally that has sent the cryptocurrency to a new high above $58.000 USD.
Bitcoin (BTC) is once again becoming the center of attention, thanks to a bullish rally that is taking place cryptocurrency currently, which has led it to mark several historical highs during the past week.
The latest largest price ever seen in Bitcoin history, so far, is $58.640 USD, showing a growth of more than 25% in the last 7 days. This cryptocurrency started on February 15 with a value of $46.770 USD per unit, and after 7 days it exceeded $58.640 USD, which has led Janet Yellen, Secretary of the United States Department of the Treasury, to warn about the possible risks involved in Bitcoin and the crypto industry, especially for new investors.
During a interview On CNBC's 'Closing Bell' show, Yellen noted that Bitcoin can be a highly speculative asset, emphasizing the need to regulate this cryptocurrency, amid the massive adoption that is being seen worldwide, with companies, businesses, banks and even cities that have begun, and want to begin, to adopt Bitcoin as a means of payment and as an investment asset. Yellen noted that the priority of regulators is to protect and safeguard investors, so it is important “regulate institutions that operate with Bitcoin, ensuring that they comply with their regulatory responsibilities.”
It may interest you: Say goodbye to old technologies, BNY Mellon adopts blockchain to create the first multi-asset platform
Ensuring safety and security
One of Yellen's and regulators' main concerns is that Bitcoin, like other cryptocurrencies, is being used for illicit purposes, primarily money laundering and terrorist financing. The US Treasury Secretary specified that she wants to ensure that Bitcoin is not used for illicit financing, so she stressed the importance of regulating institutions that provide services with crypto assets.
So far, Yellen has not given any further details on how the Treasury Department will proceed to regulate the crypto industry in the country, although late last month Yellen showed a sudden change of attitude towards Bitcoin. The head of the US regulator stated that cryptocurrencies and digital assets encompass great potential that can significantly benefit the current financial system, improving its capabilities and efficiency.
This is a reality that is becoming more evident every day in the world, with dozens of commercial banks studying the possibility of offering services related to cryptocurrencies, and central banks focusing on developing their own digital currencies (CBDC). BNY Mellon, the world's largest bank with over $41.000 billion under custody, will adopt Bitcoin and blockchain technology to develop the world's first multi-asset digital banking platform.
Robert Kiyosaki refutes Yellen's opinion
On the other hand, Robert Kiyosaki, the acclaimed author of the book “Rich Dad Poor Dad,” refuted Yellen’s recent statements, which once again seek to instill fear in less experienced investors by trying to convince them to consider Bitcoin as an asset that lends itself to illicit purposes.
The famous businessman, writer and lecturer accused the statements of the US regulator of being misleading, since far above Bitcoin, the US dollar is the main form of money used for illegal purposes, and everyone is aware of it.
Kiyosaki too he criticized the statements of the Fed Chairman, Jerome Powell, who insists on predicting the end of Bitcoin. In response to Powell's statements, Kiyosaki called on people not to be intimidated by the Fed's threats and false "promises" and said he will continue to buy more bitcoins as those who are intimidated sell their holdings.
New high for Bitcoin
Bitcoin surpassed a new high on February 21, reaching a value of $58.640,7 USD, raising its market capitalization to over $1,06 trillion. However, despite this impressive growth, the reality is that Bitcoin's own qualities and characteristics have made it an unattractive asset for criminal purposes.
As Bit2Me News has been highlighting on several occasions, Bitcoin's transparency and immutability are two native properties of the cryptocurrency that play against the interests of criminals. In addition, its level of volatility, still considered high, also makes bitcoin not the best tool for criminals and malicious actors, since it is an element that can play against them at any time, making them lose their capital, or part of it, when they least expect it. The intelligence and forensic analysis firm in blockchain, Chainalysis, confirms this reality.
In his most recent report, Chainalysis notes that only 0,04% of the more than 32 million active Bitcoin addresses in 2020 were used for illegal purposes. A fairly small figure, and even more so when compared to the amount of physical dollars that are seen involved in illicit activities and financial crimes per year, which Glenn Hutchins, co-founder of technology investment firm Silver Lake, estimates it at more than 80%.
Continue reading: Organized crime uses fiat money, not Bitcoin, says Silver Lake's Hutchins
