Over the last 10 years of Bitcoin’s journey, the digital asset has been declared dead, rat poison and a number of other things but it is still standing strong and continues to grow unperturbed by the haters.
But haters gonna hate and this time its Minneapolis Federal Reserve President Neel Kashkari who is back with his crypto is a “giant garbage dumpster” analogy.
While sharing his views on cryptocurrencies during a Montana event, on the question of whether he would want to give his year old daughter a bitcoin or Treasury bond for her next birthday, the Fed Chief picked the latter because digital currencies are “like a giant garbage dumpster.”
That’s right, the best performing asset of the decade that recorded 9 million percent of gains, is garbage that one needs to stay away from, according to Kashkari.
In the past two years, Kashkari’s views about cryptocurrencies haven’t changed, just the adjectives that he used to describe them.
In 2018, he deemed crypto assets a “farce” saying, “The barrier to entry to creating a new cryptocurrency is zero. I’m seeing more noise and more fraud than I’m seeing anything useful.”
But it could be Useful in Coming Decades
Kashkari might not have any love lost for bitcoin like many other regulators he also isn’t completely denying its potential as he said, “Maybe five years from now or 10 years from now or 20 years from now something useful will emerge from this.”
But he had to add, “so far, all that’s emerging is burning garbage,” because make no mistake he doesn’t support them.
While Bitcoin is still gaining ground in the regulatory arena, central banks around the world are working on their own digital currencies.
And this is the reason why they aren’t feeling warm towards the private cryptocurrencies as Kashikari said himself while appreciating the stability of the almighty dollar in comparison to the highly volatile Bitcoin,
“The reason that the dollar has value is because the US government has a legal monopoly on producing the dollar,” he said.
“In the virtual-currency and cryptocurrency world, there are thousands of these garbage coins out there. Literally, people have been fleeced for tens of billions of dollars, and finally the SEC is getting involved in cracking down on this.”
Well, cash is the one that rules money laundering, terrorism financing, and other illegal transactions not bitcoin, but I digress. Also, the lack of any regulatory clarity is making its hard for projects that really want to develop and easy for the scammers to fraud others