Neel Kashkari participated in a Q&A press conference this Wednesday (1st) and spoke about inflation and rising interest rates in the US. Then, when asked about it, the president of the Minneapolis Fed criticized Bitcoin, saying it has no real world use.
This is not the first time Kashkari has expressed his skepticism. In 2017, he compared cryptocurrency to Beanie Babies, a line of stuffed animals. As early as last week, he apologized on his social networks for the comparison, stabbing bitcoin investors.
“Roses are red. Violets are blue. In 2017 I compared Bitcoin to Beanie Babies, my apologies to Beanie Babies is long overdue.”joked the banker a few weeks ago.
roses are red
pansies are blue
In 2017 I compared Bitcoin to Beanie Babies
My apologies to Beanie Babies is a long time coming— Neel Kashkari (@neelkashkari) February 14, 2023
Now, six years after the comparison, Kashkari claims he is even more skeptical about Bitcoin and other cryptocurrencies. According to the banker, before he thought that 95% of cryptocurrencies were related to scams, he now believes that number is 99%.
Neel Kashkari criticizes cryptocurrencies in Q&A
According to the president of the Minneapolis Fed, “It’s been 10 years [que o Bitcoin existe] and no one can articulate any real use for it in the real world..
Neel Kashkari continues his argument, explaining that he is often asked about Bitcoin when presenting at universities, possibly due to the age of the audience, more connected to new technologies.
“So I ask them, ‘Has anyone in this room ever bought anything with Bitcoin? A sandwich, a cell phone, a book, anything'”Kashkari said and said that after that he hears nothing but “sounds of crickets”.
Moving on, Kashkari says topics like lowering international transaction costs and financial inclusion are often mentioned. However, the banker claims there is no evidence that this is happening.
“I am very skeptical and my skepticism, I used to say, was 95% [da atividade das criptomoedas estava ligada] fraud, noise and confusion. Now I believe it is 99% noise, fraud and confusion.”
“I am hopeful that 1% of something useful can come from this in the future. But no one has been able to show it.”concluded Kashkari.
Finally, the president of the Minneapolis Fed has not commented on Bitcoin being an inflation hedge. After all, many consider the scarcity of BTC to be their greatest asset.
As for US inflation, Kashkari signaled that rates could rise 0.5% at the next Fed meeting.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
