Bitcoin Has No Legitimate Use Case Crypto Is 95% Fraud, Hype, Noise & Confusion

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Minneapolis Federal Reserve Chairman Neel Kashkari said crypto was “95% fraud, hype, noise and confusion.” He added: “I haven’t seen any use cases other than funding illicit activities like drugs and prostitution.”

Minneapolis Federal Reserve Chairman Says Crypto is “95% Fraud, Hype, Noise and Confusion”

Neel Kashkari, chairman of the Federal Reserve Bank of Minneapolis, spoke on bitcoin and cryptocurrency on Tuesday at the annual Pacific Northwest Regional Economic Summit in Big Sky, Montana.

Responding to a question about cryptocurrency given what Miami is doing with bitcoin and its own recently launched coin, Kashkari said:

I was more optimistic about crypto or bitcoin about five or six years ago. So far what I’ve seen is 99%… Let me be charitable, 95% fraud, hype, noise and confusion.

He also doesn’t see a legitimate use case for bitcoin. “I haven’t seen any use cases other than funding illicit activities like drugs and prostitution. I haven’t seen any legitimate use case so far that bitcoin solves. But if you want to flip the Montana coin, don’t let me stop you, ”the Fed official said.

Some other government officials have expressed similar concerns. US Treasury Secretary Janet Yellen said earlier this year that “cryptocurrencies are of particular concern”, stressing that “many are used, at least in the sense of transactions, primarily for illicit financing.”

The Minneapolis Federal Reserve Chairman continued, “If you go into your basement and you want to start producing your own money, the Secret Service is going to come knocking on your door and handcuff you. He added: “There is no obstacle to you creating your own bitcoin or I creating my own – I’ll call it neelcoin.”

Commenting on the large number of cryptocurrencies on the market, Kashkari said:

There are thousands of these pieces of trash that have been created. Some of them are total fraud, Ponzi schemes, where they bloat, they trick people into investing money, and then the founders rip them off.

In February, Kashkari also said bitcoin and other cryptocurrencies were “like a giant dumpster.”

What do you think of the words of the president of the Federal Reserve Bank of Minneapolis? Let us know in the comments section below.

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