CNBC Host Criticizes Gary Gensler on Air for Claiming Bitcoin is Useless

Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), faced fierce opposition from one of CNBC’s popular hosts on Wednesday due to his well-known skeptical view of bitcoin.

During an eight-minute interview, Joe Kernen interrupted Gensler several times to challenge the presumed biases against bitcoin and its primary characterization as a tool for criminals.

Part of the discussion focused on comparisons between bitcoin and traditional fiat currencies, which Gensler claimed have a ‘real economic difference’ in terms of their use as a medium of exchange.

While discussing the lack of bitcoin’s ties to any nation or central bank, Kernen argued that this is ‘part of its appeal’ as it makes the currency decentralized and immune to the ‘reckless’ spending of central banks.

Gensler reiterated earlier arguments that bitcoin is actually ‘centralized’ due to its concentrated trading activity among a handful of corporate platforms. Again, Kernen noted that bitcoin’s underlying blockchain is still decentralized, although Gensler remained unconvinced of bitcoin’s value.

– How many times do people on this show say ‘I want to invest in something because of how the books and records are kept?’. I mean Joe, really? It’s just a ledger – stated Gensler.

Kernen countered that the ledger is special because anyone can access it and its transactions cannot be double-counted.

– It’s almost immutable. That’s why people think it has inherent value – Kernen said.

When asked by Gensler if he thinks bitcoin has more value than Oracle database, Kernen said that bitcoin enthusiasts believe in bitcoin much more than the central bank that allows fiscal authorities to spend money in the amount of $33 trillion.

Regarding money laundering allegations, Kernen pointed out that cash is still king, reducing the share of cryptocurrencies in the illegal financial market.

– I could run over forty people with a car, that doesn’t mean we shouldn’t have cars – Kernen said.

After approving spot bitcoin ETFs last month, Gensler issued a statement claiming that the approval is not a confirmation of bitcoin itself, which he called primarily a ‘speculative’ asset.