US Treasury Secretary Janet Yellen has once again criticized Bitcoin.

While many analysts see that her criticism is inaccurate.

Janet Yellen and Bitcoin:

In an interview with Janet Yellen, the US Secretary of the Treasury with journalist Andrew Ross Sorkin, she stated that she is not a big fan of Bitcoin, because Bitcoin consumes electricity greatly and has been offered to be used in illegal activities.

I said Secretary Yellen in response to a question about whether the Treasury needs to pay more attention to Bitcoin:

I don’t think Bitcoin is widely used as a transaction mechanism.

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To the extent that it is used, I fear it is often for illicit financing.

Healy Lennon, co-founder of Anderson Kell, said last month in Forbes that illicit Bitcoin-related funding is an old saw, and not much data backed it up.

According to Chainalysis, crypto-related criminal activity accounts for 0.34% of the volume of cryptocurrency transactions, down from 2.1% in 2019.

Nick Carter, Co-Founder and Chairman of Coin Metrics, responded to Yellen’s statement by saying:

She can’t brazenly assume that $10 billion a day of transactions is invalid.

Bitcoin is not just for buying things.

Trading transactions that are usually written off by critics can represent nothing.

The US Treasury Secretary also noted:

“Bitcoin has a very inefficient way of transacting, and the amount of energy expended in processing these transactions is staggering.

This statement appears to be directed indirectly to President Biden.

Biden has previously emphasized tackling climate change much more than his predecessor, Donald Trump, as Biden appointed former Secretary of State John Kerry as the presidential special envoy on climate stewardship.

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He told Nick Carter, that transactions do not consume a large part of the bitcoin, but the mining process that extracts new digital currencies that consumes high computing, which in turn consumes electricity.

Although this may seem like a split-up of the mining process, others argue that bitcoin transactions and the issuance of new bitcoins use the same resources and have the same costs.

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Carter added that those who liken Bitcoin to the old payment system are in fact very wrong, and his statement is as follows:

In the long run, it makes no sense to compare today’s energy expenditure with what it will be in the future, since 18.6 million Bitcoins have already been mined.

Energy expenditures should decrease over time.

Yellen warned that bitcoin is a highly speculative and highly volatile asset, which could be the only right thing in her comments, as bitcoin has fallen below the $50,000 level in a short time.

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