Bitcoin is for Toy Collectors says, Minneapolis Fed President Neel Kashkari

Minneapolis Fed President Neel Kashkari told:

“If you live in any modern advanced economy, I would stick with the dollar, I would stick with the yen and leave bitcoin for the, you know, toy collectors.”

Bitcoin grew 2,000 percent in just 12 months to above $19,000 in December, bringing the attention of Wall Street and increasing thought that cryptocurrencies may one day be a new asset class. The world’s largest futures exchange, CME, and its competitor, Cboe, launched bitcoin futures trading in December.

Because of the increasing transaction fees and longer confirmation times, bitcoin became less effective as a means of commerce. Bitcoin has grown high and dropped below $6,000 this week. Its price volatility is scaring the investors from investing in Bitcoin.

Kashkari Included:

“I don’t really think of bitcoin as a currency. I think of it as a novelty. The idea that these virtual currencies are ever going to compete with the dollar is hard to fathom. Anyhow, bitcoin itself may be scarce like gold, the problem is the barrier to entry for anybody creating another version of bitcoin is zero.”

He also told that countries such as Venezuela with less political resistance can be attracted towards virtual currency.