Former Treasury Secretary Lawrence Summers Says Bitcoin may become fundamental to commerce on Internet

Lawrence Summers, the former US Treasury Secretary and the former Chief Economist of the World Bank recently appeared on Bloomberg where he said that cryptocurrencies are here to stay and Bitcoin may become “fundamental to commerce on the Internet.” Summers said that just like Gold Bitcoin could become a choice as an inflation hedge and become digital gold.

Lawrence Summers, previous Chief Economist of the World Bank, former Treasury Secretary, and former director of the National Economic Council,

"#Bitcoin may become fundamental to commerce on the Internet" pic.twitter.com/Ens5bcsDmq

— Documenting Bitcoin 📄 (@DocumentingBTC) May 22, 2021

Summers comment comes at a time when a slew of market FUDs right from China banning Bitcoin to the energy consumption debate of the BTC network. The bull run of 2021 saw many new traders and buyers flock to add cryptocurrency in their portfolio, most of them got in to make some quick money and now are panic selling to series of news headlines that are meant to deter new buyers. For example, China banning Bitcoin is nothing new and they have been making such an announcement since 2013.

The ‘Bitcoin network is bad for the environment’ debate first made headlines in 2018 which was later tracked down to a single blog without any research to back the claims. There is no denying that the network consumes a lot of electricity but a majority of it comes from clean energy sources and with each halving, the energy consumption would come down along with increasing renewable energy usage. In comparison, gold mining and the banking system consume exponentially more energy.

Bitcoin Bull Runs Are Historically Associated With FUDs

Each bull cycle of Bitcoin comes with its own FUD cycle as well, even though a majority of the ongoing FUDs have been debunked earlier, the new buyers often fall prey to such news and start panic selling.

Each bull cycle also sees a number of large retracements and this bull cycle are no different, where after nearly 4 months of hitting new ATH consistently the market has seen its first major retracement of over 40%. Previous bull cycles have registered at least 3-4 major retracements of 40% and more.