Minneapolis Federal Reserve President Neel Kashkari has loudly discarded the cryptocurrency market’s potential to survive long-term, saying it has become a “farce” due to unregulated chaos and escalating fraud.
Cryptocurrency market has been in the state of freefall over the last two weeks potentially die to experts bashing the markets. Bitcoin price (BTC) plunged below the $8,000 level today while altcoins have also lost the gains they generated earlier this month. The Minneapolis Federal Reserve President, however, expects the market crash to intensify in the days to come.
Source Image: coinmarketcap.com
Why Doesn’t Kashkari Have Confidence in Cryptocurrency Market?
Neel Kashkari has raised some critical question about cryptocurrency markets. He argued that everyone can become a “millionaire” by creating and selling crypto coins in the market, saying:
“If you can dupe enough people to buy it, you can pretend that you’ve launched something. And you can say, ‘Look, I’m a billionaire because I sold you one. And I own the other 999 million of them, so that means I’m a billionaire! So it has become a farce… I see more noise and more fraud than I see anything useful.”
Actually, he was raising a question over the lack of entry barriers into the cryptocurrency market. He thinks there are no obstacles to market entry. He further added that only a handful of coins would survive in the future.
Previously, St. Louis Federal Reserve President James Bullard’s and New York Fed’s John Williams, also wouldn’t accept cryptocurrencies as stable currencies or viable alternatives to the U.S. Dollar.
Neel Kashkari Concerns Are Genuine
Source Image: twitter.com
Neel Kashkari’s concerns are undoubtedly valid despite the bulls criticism. The market has witnessed the creation of thousands of new coins in the last year alone. More than 1615 coins are listed on Coinmarketcap’s website at present. Although some countries started looking at new ICO’s, the majority of existing coins didn’t face any barrier to entry. They have created the coins and sold them on the market without any backing.
Featured Image: Twitter