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Newly Elected German Chancellor Olaf Scholz Once Made Bold Claims About Cryptocurrency 

The cryptocurrency market is currently undergoing correction, after witnessing a surge in prices in late October and early November. The price of BTC at press time is about $57k, with optimistic investors predicting its price alongside other cryptos to continue rising. 

Despite the increasing likeness for the flagship asset and altcoins, one person that has always shared his pessimism for cryptos is the newly elected German Chancellor Olaf Scholz. Scholz once compared the market bubble of cryptocurrencies to that of a tulip bubble, adding that he prefers the states to monopolize currency. 

In 2018, the newly elected Chancellor said that he doubts if digital assets have any prospect as a currency. He added the danger is so high that it will turn into tulip inflation (referring to the popular tulip bubble that began in 17th century Amsterdam). 

Scholz Warns About the Energy Consumption of the Decentralized Network 

Scholz also warned about the high energy consumed by the Bitcoin decentralized network. Typically, blockchains take up a huge amount of energy to mint one cryptocurrency and validate transactions. 

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Countries, such as Kyrgyzstan and Argentina have frequently complained about the amount of power blockchain consumes. In September, Kyrgyzstan shut down over 500 Illegal mining facilities after it discovered that the various mining machines used more than 3kw of electricity per hour, which led to shortage of electricity in the country. 

Bitcoin Electricity Consumption Index from Cambridge University revealed that the Bitcoin network consumes up to 200 terawatt-hours of power annually, which is comparable to the amount of power used in Thailand. Due to these energy-intensive blockchains, the Swedish authorities called on the EU to stop crypto mining. 

The new German Chancellor is expected to lead efforts to transition the European powerhouse to a green economy. This includes finding a method to do away with fossil fuels to become a zero-carbon nation. 

Scholz Once Criticized the Idea of a Private Cryptocurrency 

Scholz also shared his opinion about Facebook’s plan to launch its own digital currency. The new head of government downright lambasted the idea, calling the social network’s regulatory concerns as ‘cosmetic.’

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In November 2020, Scholz stated that he doesn’t support private sector cryptocurrency, reiterating the need for the government to monopolize currency. 

Scholz isn’t the only prominent world leader to have shared his pessimism about cryptocurrency. Last week, former Democratic presidential candidate and Secretary of State Hillary Clinton, disclosed during a Bloomberg meeting that Bitcoin and altcoins could undermine the potency of the U.S dollar and its status as the reserve currency. 

Clinton said that cryptos may look exotic and interesting, but it could hamper currencies, eventually destabilizing the world economy. She hopes that nations pay more attention to the rise of these assets. 

Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

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