Three of the top U.S. economists have negatively spoken of Bitcoin (BTC) and its survival prospects during a meeting with Financial News on July 9th. Accordingly, Joseph Stiglitz, Kenneth Rogoff, and Nouriel Roubini made remarks claiming that Bitcoin (BTC) will collapse as a currency due to its lack of intrinsic value and its price volatility.
Bitcoin (BTC) is not a reliable fiat money alternative
Joseph Stiglitz also criticized the Bitcoin (BTC) traditional anonymity of transactions stating that it is contrary to the concept of a “transparent banking system.” According to him, crypto coins such as Bitcoin (BTC) provide support (unwillingly, of course) to “harmful activities” which “no government can afford.”
Kenneth Rogoff, the ex-chief economist at the International Monetary Fund (IMF) and a Harvard University professor, reaffirmed his dissenting view on Bitcoin (BTC), saying that the leading cryptocurrency in the world would be trading at just $100 in about ten years. He also mentioned government engagement in the crypto-verse, cautioning that “the people in power” will be in charge of overseeing “anonymous transactions.”
Nouriel Roubini, also known as “Dr. Doom” for his supposed “prophecy” of the 2008 financial crisis, claimed that Bitcoin (BTC) has none of the features of fiat money. Roubini also complained about BTC price volatility, scornfully stating that Bitcoin “is not even accepted at BTC conferences, and how can something that falls 20% one day and then rises 20% the next day be a stable store of value?”
Central banks and governments are not threatened by Bitcoin (BTC)
Some worldwide governments have, in fact, given clear declarations that crypto is a non-threatening phenomenon to traditional finance. Also, the same concept is accepted by central banks around the world.
The Bank of Korea (BOK) also argued that crypto assets do not present risks to the domestic financial market because of their not very large volumes in comparison to other stock market’s assets, for example. Another example comes from the Netherlands where the government stated that cryptos pose only a low risk to the country’s financial stability.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.