Three leading American economists, Joseph Stiglitz, Kenneth Rogoff, and Nouriel Roubini recently made statements that they believe that bitcoin will fail as a currency. They said that the main reason for this is its price volatility and the lack of an intrinsic value.
They believe that government regulation will be so tight for bitcoin, that the cryptocurrency will end up obsolete. This is not the first time that these three have attacked bitcoin.
Stiglitz, a Nobel prize-winning economist, and professor at Columbia University said,
You cannot have a means of payment that is based on secrecy when you’re trying to create a transparent banking system.
Apart from Bitcoin’s anonymity, he also claimed that cryptocurrencies like bitcoin create scope for ‘nefarious activities’ that no government can allow. He stated that no global regulations were set in place because the cryptocurrency industry is still relatively small. He added,
Once it becomes significant they will use the hammer.
Rogoff is the former chief economist of the International Monetary Fund and a Harvard professor. He said that Bitcoin would be worth as low as $100 in ten years. He added,
People in power will move to regulate anonymous transactions. That you can be sure of.
Roubini, the NYU economist and more famously known as Dr. Doom for predicting the financial crisis of 2008, stated that Bitcoin doesn’t fulfill any of the characteristics of money. He also criticised the lack of stability. He composed his thoughts through the following statement.
For bitcoin to be a currency it has to be a unit of account, a means of payment, and a stable store of value. It is none of these. Bitcoin is not even accepted at Bitcoin conferences, and how can something that falls 20% one day and then rises 20% the next be a stable store of value.
The world and individuals are split on their thoughts on cryptocurrency. While a lot of criticism has come from some financial institutions and even the renowned investor Warren Buffet, the opinion of these three highly regarded economists does hold extra weight. However, at the same time, some governments across the world are also investing in understanding and implementing cryptocurrency in their banking system. Only time will tell what side of the debate wins.
Follow us on Telegram!