Minneapolis Federal Reserve President Neel Kashkari has expressed skepticism about Bitcoin, stating that it lacks a genuine purpose and poses risks to investors.
No Practical Use
Kashkari compared Bitcoin to Beanie Babies, arguing that its value could plummet to zero. He emphasized that it serves no practical function beyond entertainment and speculation.
Consumer Safety Concerns
According to Kashkari, Bitcoin is a consumer safety issue rather than a financial stability risk. He believes that investors are unaware of what they are investing in and could face significant losses.
Illicit Activities
Kashkari also raised concerns about the use of Bitcoin for illegal activities, such as evading banking regulations and facilitating drug transactions.
Comparison to Amazon
Kashkari dismissed comparisons between Bitcoin and Amazon, arguing that Bitcoin has existed for over a decade without establishing a legitimate use case in developed economies.
