Edward Snowden Believes Crypto Is Good For Payments, Not For Investments: Here's Why

"In 2013, Bitcoin is what I used to pay for the servers pseudonymously," Snowden said.

Edward Snowden, the known NSA whistleblower, believes that cryptocurrencies may not be suitable for investments, but can provide more value when used for payments and similar services. Speaking virtually at CoinDesk's Consensus 2022 conference held in Austin, Texas, US, Snowden revealed how he prefers to use Bitcoin and explained what “distances” him from several other members of the global crypto community. The cryptocurrency market is facing an unprecedented plunge in prices, with Bitcoin registering a record 18-month low on Monday.

Snowden said at the CoinDesk event, “I use Bitcoin to use it. In 2013, Bitcoin is what I used to pay for the servers pseudonymously.” In 2013, Snowden leaked classified information on how the US National Security Agency (NSA) snooped on citizens.

"Generally I don't encourage people to put their money in cryptocurrencies as a technology and this is what distances me from a lot of people in the community," Snowden added.

ALSO ON ABP LIVE: Bitcoin Price Crashes To Record Low As Crypto Bloodbath Continues: Why Is The Market Plunging? What Should Investors Keep In Mind?

Snowden’s statements come at a time when the overall crypto market is seeing unprecedented bloodshed in terms of prices. Bitcoin, the world’s largest crypto, has been on a decline for 12 consecutive weeks now. At the time of writing, Bitcoin price stood at $22,375, as per CoinMarketCap data. This is more than half lesser than BTC’s 2022 high of $49,000, and considerably lower than the crypto’s all-time high of $68,000.

While Snowden didn’t comment directly on the current market meltdown, his words do serve as a caution against crypto investors.

Considering the current market scenario, Edul Patel, CEO and Co-Founder of crypto trading platform Mudrex, told ABP Live, “investors looking towards stocking up on cryptos can DCA.” For those unaware, DCA, or dollar-cost averaging, is a long-term strategy that can help reduce the impact of market volatility by investing smaller amounts into an asset on a regular basis.

“At the same time, others should closely monitor the market movements rather than jumping into impulsive buying activities,” Patel added.