Note that the collapse of cryptocurrencies is still not over. In particular, Bitcoin is now valued at $29,000. The situation with other coins looks like this.

Results of changes in cryptocurrency rates during the day

The problems in digital assets are primarily due to the situation in the traditional financial niche. In particular, the S&P500 Index continues to fall. The index has fallen by 18 percent since the first of January 2022 and has not yet preliminarily reached its bottom.

Graph of the S&P500 index in 2022

What is happening is worsening against a backdrop of global inflation and geopolitical instability, among other things.

Why cryptocurrencies are being criticised

Here is one of Bernarke’s quotes in which he shares his view of what is happening. The replica is published by the news outlet Decrypt.

If Bitcoin were a substitute for conventional money, you could use it to shop around. No one buys goods with Bitcoin because it is too expensive and inconvenient to use.


Note that this replica is not true. Yes, Bitcoin is not the most convenient network for making payments on a daily basis, as it takes at least ten minutes to complete a transaction. In addition, transfer fees on the network are quite high, with yesterday's average being the equivalent of $1.86.

However, it is important to remember that Bitcoin has a Lightning Network, which allows almost instant transactions for pennies. In addition, there are plenty of modern cryptocurrencies like Avalanche, Solana and other coins suitable for direct payments. Finally, in El Salvador, BTC is the official means of payment, so such replicas are wrong.


A graph of the average commission on the Bitcoin network

Here’s another Bernarke rejoinder – this time a direct comparison between cryptocurrency and the utility of gold.

At least gold can be used to fill voids. Bitcoin’s main fundamental value, on the other hand, is extortion. One of the other risks associated with Bitcoin is that it could be subject to much more regulation and its anonymity threatened.

Former US Federal Reserve chief Ben Bernarke

In general, you are unlikely to be able to spend BTC in most shops around the world. However, we already have a precedent for full legalisation of cryptocurrency at the state level – we are talking about the already mentioned El Salvador, where Bitcoin became official tender on the seventh of September 2021.

Bernarke’s comment about extortion is indeed a “sore subject”. Fraud and hacking losses in the crypto industry are still measured in the billions of dollars. However, this should not become a phenomenon that overshadows the potential positive impact of the innovation that Bitcoin brings to global finance. In addition, fiat money has been used just as successfully for extortion, ransomware and simply illegal activities.

Read also: How much money have crypto investors and traders lost due to the current Bitcoin collapse?

Bitcoin may not only be misunderstood or openly acknowledged by well-known financiers. For example, the Coupon Follow platform conducted a survey the previous day among 1,172 people of various ages who still haven’t bought the crypto. As it turned out, lack of understanding was cited as the most popular reason for buyers of all generations – from young people to so-called baby boomers. When asked about their reasons for not buying cryptocurrencies, 42 percent of respondents said they “don’t understand their value,” Cointelegraph reported.

However, judging by the report, interest in learning about cryptocurrencies has not waned. Even if they don’t want to invest in them, most respondents are at least somewhat interested in learning more about crypto. That said, however, a significant 39 percent of survey participants were deterred by the excessive volatility of cryptocurrencies, i.e. sharp changes in their value.

Respondents’ answers about their reason for not buying crypto

Eighteen percent of respondents said that learning more about the benefits of investing in cryptocurrency is the most effective approach to go from skeptic to dedicated crypto-enthusiast. Millennials, meanwhile, believe that increased disposable income is the most likely scenario to convince them to invest in cryptocurrency. Younger generations, on the other hand, are more interested in government regulation and enforcement in the digital asset industry.


We believe that Bitcoin is much more than just an "extortion tool". Yes, cryptocurrency is being used for illegal purposes, but the same can be said for fiat. That said, the value of BTC as the first cryptocurrency and first-generation blockchain is primarily because it has truly allowed people to truly own and manage their own money as they see fit. The only one who can deny this fact and oppose the decentralisation of finance is someone who is disadvantaged by it.


Hopefully, the popularity of the crypto market will convince all of them to join the cryptosphere. Look for even more interesting things in our millionaires’ cryptochat.

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