Senator Warren Says, Cryptos Are ‘Speculative In Nature And Going To End Badly’

Crypto critic senator Elizabeth Warren doesn't see cryptocurrency investment ending up good for anyone.

“Speculative in nature and going to end badly,” is what she had to say about the digital currencies in an interview with CNBC. Back in 2018, she said, “The challenge is how to nurture productive aspects of crypto with protecting consumers.”

On Tuesday, Warren was asked if she agrees with US Treasury Secretary Janet Yellen's sentiments about cryptocurrencies. Warren said Yellen is a “very smart woman,” and she didn’t leave much room for ambiguity regarding her views on cryptos.

Yellen called Bitcoin “highly speculative” last month because of cryptocurrencies usage in terrorist financing and illegal business. She also called the leading digital currency “extremely” energy inefficient.

Cathie Wood, founder, and CEO of hedge fund ARK Invest addressed Yellen’s remarks, saying the Treasury Secretary doesn't understand cryptocurrencies. She said,

“I’m not quite sure why she’s saying this. All I know is that she doesn’t understand the crypto space, and I say this with all due respect; I just don’t think it is what she does. She’s responding to a movement in price, that I understand, which has been very rapid.”

Wood further argued that the energy usage of Bitcoin, which is mostly renewable, is a fraction of that used to mine gold, and it “hardly measures up” to the energy consumption of the traditional financial world.

Warren, meanwhile, as one of her first moves as a new member of the Senate Finance Committee, unveiled legislation this week that would introduce the Ultra-Millionaire Tax Act. As per this proposal, a 2% annual tax on households and trust over $50 million will be introduced. An additional 1% annual surtax could be added to those whose wealth exceeds $1 billion. She said in the interview,

“I think most people would rather be rich and pay 2 cents. This is not very fancy. It really is a tax on fortunes above $50 million.”

According to her, wealth tax was needed for a long time in order to produce more opportunity in America. In a statement, she pointed out how the wealth of the billionaire class increased by more than a trillion dollars over the last year, during the pandemic. Warren said,

“We do understand the direction we’ve been going. This pandemic has created more billionaires. The people at the top are not barely hanging on by their fingernails.”

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