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Fed's Kashkari Says $1.3 Trillion Market Cap Bitcoin "Still Useless"; BlackRock's Fink Strongly Disagrees...

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by Tyler Durden
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Unlike his financial system overlord peer Jamie Dimon, BlackRock CEO Larry Fink continues to show an optimistic view on cryptocurrencies.

During yesterday's earnings call, Fink declared, "I'm not sure if either president would make a difference" on Bitcoin's growth,” adding "I don't believe [Bitcoin's rise] is a function of regulation."

He went on to compare Bitcoin’s growth to much larger markets like mortgages, noting liquidity and transparency drives adoption more than rules.

Well, first, I'm not sure if either President or other candidate would make a difference. I do believe the utilization of digital assets are going to become more and more of a reality worldwide.

Conversations we're having with institutions worldwide, conversations about how should they think about digital assets, what type of asset allocation there should be. I mean, we believe Bitcoin is an asset class in itself. It is an alternative to other commodities like gold. And so, I think the application of this form of investment will be expanded to the role of Ethereum as a blockchain can grow dramatically. So if we can create more acceptability, more transparency, more analytics related to these assets, then it will be expanded.

But I truly don't believe it's a function of regulation, of more regulation, less regulation. I think it's a function of liquidity, transparency, and then through that process, no different than when you - years ago when we started the mortgage market, years ago when the high yield market occurred, started off very slow, but it built as we built better analytics and data, and then through better analytics and data, more acceptance and a broadening of the market. And I truly believe we will see a broadening of the market of these digital assets.

And then we'll see how does each and every country look at their own digital currency. That's a very different asset than a Bitcoin in itself. But I do believe what we're going to witness as we build out better analytics, and then the question is, as you mentioned regulation, how do we see in this country the role of digitizing the dollar? And what role does that play? That's a very different question related to, let's say, Bitcoin and other items like that. But all of that is going to be under discussion.

And what we re witnessing in other countries, we're seeing big success in India, in Brazil in the digitization of their own currency for various different reasons. But we believe the technology of these blockchains are going to become very additive. And then you will overlay Al, and having better data analytics, the applicability and the broadening of these markets will occur.

But, there are always the naysayers, and true to his theme over the last ten years, Minneapolis Fed President Neel Kashkari exclaimed yesterday that "bitcoin has been around a dozen years and its still useless".

This should not come as a surprise since Kashkari has been comparing Bitcoin to Beanie Babies for years...

Of course, The Fed does not want anyone seeing this 'alternative' currency taking off since it exposes the potemkin reality that they spend every day defending. In fact, Bitcoin is breaking out this morning...

...following the lagged surge in global liquidity right on cue...

So, despite the $1.3 trillion market cap and 1.2 billion wallets using the cryptocurrency... and Fink's optimism over adoption... and Trump's plans for a strategic reserve... and Kamala's proposals to empower black men in the crypto world... a Fed head remains dissonant, presumably believing the entire crypto ecosystem is nothing but 'transitory'.

Bitcoin is the 10th largest asset on the planet...

Well, you know what else is transitory...

...nothing lasts forever, Neel!

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