Bitcoin Is Not A Rival For Dollar, US Fed Reserve Placeman Says

Bitcoin Is Not A Rival For Dollar, US Fed Reserve Placeman Says

On Wednesday, January 17, Bitcoin reached its 2018 low of $9,199, according to Coindesk. At the moment, the whole crypto market is suffering from a devastating correction, which crashed upon the market a day before. However, just last week bitcoin was balancing between the rates of $13,000 and $14,000.

Nevertheless, there is still a lot of rivalry in the world finance market, stirred up by cyber money. There were lots of claims that with time bitcoin will substitute fiat money, the dollar in particular, or even gold, but not everyone agrees with such adoption of BTC.

Kashkari’s View On BTC

One of these people is Neel Kashkari, the Minneapolis Federal President. Last week he claimed that bitcoin could not threaten the American dollar – end of story.

"I don't see bitcoin as a credible competitor to the dollar in the United States of America, and the reason is the barrier of entry to you creating your own coin and me creating my own virtual currency... is zero," said Kashkari.

Indeed, BTC has chances to substitute, for example, gold. In case bitcoin replaces gold entirely, one coin would be worth of $357,000, according to CNBC. But if it displaces only 5% of gold, which may occur in five years, one BTC unit will be worth of $25,000.


Neel Kaskari (Image Source: Flickr)

Meanwhile, Kashkari also added that nowadays a plethora of novel currencies are being developed daily, and bitcoin has lots of competitors in the field – alternative coins. So there is still a high probability of inflation in the area as no one knows which digital currency to trust. Kashkari also said that there still are going to take place lots of changes before people understand what’s what.

Notwithstanding the above, the US Federal Reserve placeman conceded that in the perspectives of both bitcoin and altcoins will get on a grander scale in the world with time. However, at the moment the functionality of crypto brethren remains undefined.

The Shaking Crypto Market

In the meantime, the whole crypto market is experiencing a considerable decline. For two days the massive majority of top-100 cryptocurrencies, listed on the Coinmarketcap.com, remains red colored, meaning, all of them are plummeting non-stop. Currently, the total coin market cap makes up $461.5 billion. That’s 1.5 times smaller than it was on January 15. Will the market and bitcoin, mainly, survive, no one knows, but the fact is that bitcoin is volatile at its core.

What Everyone Should Know About Tokenization
Blockchain tokenization is a means of digital representation of a right and can be done with the help of a ledger. This can be a right to asset...
Bitcoin’s Volatility? In 2017 BTC Was More Stable Than In Its Early Days
Despite some 30% crashes in 2017, bitcoin managed to increase by total 1,400% last year, conquering the world’s financial stage. Banks are becoming...
Stablecoin - Everything You Need to Know
What Is A Stablecoin? You must have heard of cryptocurrency which has been the recent talk of the town. Well, stablecoins are a form of...
Gold Pulls Bitcoin Investors From BTC, Says Van Eck Associates CEO
In 2017-2018 bitcoin bit gold as bait for investors. However, the situation is expected to change in 2019 as investors already hope more for the gold...
Crypto-Supporter Milne Said Bitcoin’s Only Ledger to Last 100 Years
As bitcoin continues trading approximately Twitter thread entrepreneur Alistair Milne forecasted that the upcoming cyber money bull will decide which...
Increased Supply of Altcoins Will Depress Bitcoin, Says St. Louis Fed Report
As it is known, crypto-supporters (bitcoin bulls) widely believe that the increase in the capped supply of all cyber-coins will boost bitcoin’s value...
BTC Market Cap Will Surpass $7 Trillion Gold Cap, Say Winklevoss
Recently, Tyler and Cameron Winklevoss, world-known entrepreneurs and early supporters of cryptos, have taken part in Reddit’s traded at $4,061 and...
Crypto-Community Celebrates Bitcoin’s 10th Birthday
This year’s January 3 marks a decade since the first bitcoin block was generated by Satoshi Nakamoto. Back then, in 2009, this person (or group of...
Best Bitcoin Memes in 2018: ‘Hodling’ and Crying
2018 has not been an easy year for bitcoin, not at all. Whereas it left 2017 at the price of $10,000, it started the new year in a pretty bullish...
Bitcoin Hits $4,190 For The First Time Since Early December
For the first time in a fortnight, bitcoin has managed to creep above the $4,000-margin. As of writing, the king of all cryptos is traded at $4,031...