Minneapolis Federal Reserve President: Never Met Anyone Who Bought Something With Bitcoin, Asserts The Cryptocurrency Is A “Terrible Inflation Hedge”
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The gloves are truly off. In what is nothing other than a scathing attack on the crypto sector in general and Bitcoin in particular, the Minneapolis Federal Reserve President, Neel Kashkari, has tried to bludgeon the very ethos of Bitcoin in a recent public talk. Yet, with the US Dollar losing ~90 percent of its value in relation to Bitcoin over the past 5 years alone, we would continue to recommend a hefty dose of caution and humility to the purveyors of our modern monetary system.
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To wit, Kashkari raised three major points against Bitcoin in a recent public talk. He asserts that he has never met anyone who had bought a common staple using Bitcoin, questioning the cryptocurrency's role as a medium of exchange. He then cites the example of the post-pandemic inflationary impulse, where Bitcoin tanked with the rest of the risky asset universe, to posit that the cryptocurrency remains a "terrible inflation hedge." Finally, Kashkari thinks Bitcoin is nothing but a vehicle for speculation.
Of course, Kashkari is on record for stating elsewhere that there is an "infinite amount of cash at the Federal Reserve." While we will not argue the merits of creating infinite liquidity out of thin air in this post, those who posit fiat currencies as the pinnacle of financial innovation and fortitude should google what an ounce of Gold bought in 1971 and what it buys today.
People often forget that the crypto sector is still a veritable toddler, with all of the teething pains that accompany a growth spurt that is a hallmark of this stage. There is, nonetheless, an evolving consensus that Bitcoin is an excellent risk-on hedge. And, we now know why.
As per a new study, Bitcoin moves in the direction of the global M2 supply a whopping 83 percent of the time! What's
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