In light of the failure of the significant cryptocurrency trading site FTX, the president of the Minneapolis Federal Reserve Bank asserts that the concept of digital assets may be disregarded.
President of the Federal Reserve Neel Kashkari said there is corruption in crypto that will not stop with the demise of FTX since the whole business is “nonsense” and has no real-world applications.
“This is not a case of a single dishonest business in a legitimate sector. The whole concept of crypto is absurd. Not applicable for payments. There is no inflation hedge. No deficiency. There is no taxation authority. “Nothing but a tool for speculators and greater idiots.”
Kashkari’s criticism of cryptocurrency isn’t new. The Fed president said that Bitcoin (BTC) and almost all other crypto assets were fraudulent in origin a year ago.
The fact that anybody may establish a virtual currency without legal penalties, he noted at the time, makes them virtually meaningless.
In reflection, I may say, “I had higher hopes for Bitcoin and cryptocurrencies about five or six years ago. So far, I have seen 99%, 95% – let’s be kind – 95% fraud, hype, noise, and confusion.
If you’re curious about the dollar’s worth, why is it so high, and what makes it so special? Given that the United States government controls the creation of all currency denominated in dollars. The Secret Service will show up at your house and arrest you if you decide to go down to your basement and start printing your own money. There is nothing stopping us from producing our own Bitcoin.
Some of them are total scam artists. Ponzi schemes, in which investors are tricked into investing money and subsequently ripped off by the scheme’s creators.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.