Bitcoin Was 'Terrible Inflation Hedge,' Fed's Neel Kashkari Says: 'Has Anyone Bought Anything With It?'
Portfolio Pulse from Murtuza Merchant
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, criticized Bitcoin's utility as a currency and its effectiveness as an inflation hedge, comparing it to speculative investments like Beanie Babies. He shared concerns over Americans potentially making poor investment choices based on Bitcoin's promotion. In contrast, Troy Cross from the Bitcoin Policy Institute defended Bitcoin's real-world utility, citing personal experiences of purchasing goods and services with it.
February 07, 2024 | 6:09 pm
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Neel Kashkari's critical comments on Bitcoin's utility and its failure as an inflation hedge could negatively impact investor sentiment towards Bitcoin in the short term.
High-profile criticism from a Federal Reserve official can influence market perception and investor confidence in Bitcoin, potentially leading to a short-term negative impact on its price. However, the defense by a Bitcoin Policy Institute fellow could mitigate some of the negative sentiment.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90