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Minneapolis Federal Reserve Chief: Bitcoin is for toy collectors

08 February 2018 21:00, UTC

The leader of the regional Federal Reserve in Minneapolis, unlike Chris Giancarlo from CFTC, does not see the positive side of Bitcoin. For example, when comparing fiat currencies to cryptocurrencies, he told that dollar and yen were for serious investments, and Bitcoin was more like for toy collectors.

Neel Kashkari explains this categorical statement by saying that everybody can create another version of Bitcoin, implying nobody would be able to separate Satoshi’s Bitcoin from the new installment. But what largely contradicts this is the situation around Bitcoin Cash: while some supporters indeed call it a real Bitcoin, the whole community called it Bitcoin Cash from the start, indicating that the market is able to separate BTC from BCH.

Also, as the father of the creator of Ethereum once said, one can certainly invent a new version of Bitcoin, but the market won’t necessarily accept it - especially if the new version lacks the benefits of the original.

Current United States Federal Reserve Chair Powell, nominated by President Trump last year, has already expressed his views on Bitcoin. While not comparing crypto traders to toy collectors, he made it clear before taking the post that the market is still not big enough to influence the U.S. economy and therefore it is not dangerous. Neel Kashkari, too, does not believe in Bitcoin driving out the dollar anytime soon.