Bitcoin is not for serious investors, the head of the Minneapolis Federal Reserve said Thursday.
"If you live in any modern advanced economy, I would stick with the dollar, I would stick with the yen and leave bitcoin for the, you know, toy collectors," Minneapolis Fed President Neel Kashkari said during a town hall meeting in Pierre, South Dakota.
Bitcoin surged 2,000 percent in just 12 months to above $19,000 in December, drawing the attention of Wall Street and increasing speculation that cryptocurrencies may one day be a new asset class. The world's largest futures exchange, CME, and its competitor, Cboe, launched bitcoin futures trading in December.
Due to increasing transaction fees and longer confirmation times, bitcoin has also become less effective as a means of commerce. The cryptocurrency has also rapidly plunged from its record high, briefly dropping below $6,000 this week.
"I don't really think of bitcoin as a currency. I think of it as a novelty. The idea that these virtual currencies are ever going to compete with the dollar is hard to fathom," Kashkari said. He said that although bitcoin itself may be scarce like gold, "the problem is the barrier for entry for anybody creating another version of bitcoin is zero."
Kashkari did acknowledge that in countries with less political stability, such as Venezuela, a virtual currency not tied to the government could be attractive.
Bitcoin traded up about 8 percent by midday Thursday.
Enigma Delays Release of 'Discovery' Protocol on Ethereum Mainnet
Engima, the startup seeking to bring privacy to the world of public blockchains, is delaying the launch of its mainnet as part of a wider reworking of its developmental roadmap.
The company had pre
Just a Cycle? Big Bitcoin Miners Stay Positive in Face of Market Slump
Despite the downturn in the crypto markets so far in 2018, executives from several bitcoin mining firms have said this scenario has been seen before and they are not deterred by current low prices.
Quick Brew? BitFury's Coffee Machine Accepts Bitcoin Via Lightning Network
Blockchain firm Bitfury has come up with a novel product aimed to make it easier to pay for products with bitcoin.
To that end, a specialized engineering team within the company has developed a cof
Coinbase Disputes Claims in New York Attorney General's Exchange Report
A recent report published by the New York Office of the Attorney General (OAG), which claimed several cryptocurrency exchanges it investigated are vulnerable to market manipulation, has drawn backlash
Bitfury Reveals New Generation of Bitcoin ASIC Chips
Bitfury Group has developed a new, more efficient bitcoin mining chip, the firm announced Wednesday.
The Bitfury Clarke application-specific integrated circuit (ASIC) chip "offers the strongest per
US Lawmakers 'Strongly Urge' IRS to Update Crypto Tax Guidance
A group of U.S. lawmakers has called on the nation's Internal Revenue Service (IRS) to release comprehensive guidance for taxpayers earning gains on cryptocurrency investments or transactions.
Brazil Moves to Probe Banks After Crypto Exchanges Denied Services
Brazil's antitrust watchdog is investigating whether the major banks in the country worked together to close off access to cryptocurrency services.
The Administrative Council for Economic Defense (
Japan Lost $540 Million to Crypto Hacks in First Half of 2018
After news broke yesterday of yet another hack of a cryptocurrency exchange in Japan, the country's police authority has released figures revealing the rise in such attacks this year.