Bitcoin (BTC)’s chances of surviving low with more governmental regulations
Bitcoin (BTC) seems to have garnered more critiques. The world’s first cryptocurrency is being bashed by three major American economists. The digital currency has a long list of critics and features some major names in the industry. It includes Bitcoin cash evangelist, Roger Ver, a Saudi prince and Jamie Dimon, the CEO of JP Morgan among others.
Just recently, Roger Ver alleged that the Bitcoin blockchain’s congestion was created intentionally. He further added that the Lightning Network was created as a solution to this intentionally created problem. But this time, Joseph Stiglitz, Kenneth Rogoff, and Nouriel Roubini think that “Bitcoin will fail as a currency.” All three of them criticized the crypto coins lack of intrinsic value and the fluctuation in its price.
Nobel Prize-winning economist and professor at Columbia University, Joseph Stiglitz spoke about the anonymity of the cryptocurrency. According to him, the idea of creating “a transparent banking system” is contradicted by this anonymity. He further claims that digital currencies like Bitcoin enables criminal activities, which he said, “no government can allow.”
According to Stiglitz, the crypto market is relatively small, which is why global financial regulators haven’t taken more stringent action. In his interview with the Financial News, he said,
“Once it [the cryptocurrency market] becomes significant they will use the hammer.”
Kenneth Rogoff said that Bitcoin, which currently rules the crypto market and sits on the top post could drop drastically. According to him, the crypto’s price to could down to around $100 in ten years’ time. Rogoff is a professional chess player and a professor at Harvard University. He also worked at the International Monetary Fund (IMF) as the chief economist. Speaking of governmental involvement in the crypto sector, he said “anonymous transactions” will be regulated by “people in power.”
The third critic among these economists is Nouriel Roubini, also dubbed, “Dr Doom.” The NYU economist who allegedly predicted the 2008 financial crisis said, Bitcoin doesn’t fulfil any of the characteristics of money. He dismisses the cryptocurrency as something that “is not even accepted at bitcoin conferences.”
Speaking about the crypto coin’s volatility, he said,
“and how can something that falls 20% one day and then rises 20% the next be a stable store of value?”
Several governments across the world have stated explicitly that crypto doesn’t threaten traditional financial systems. At least, not at its current volumes. Bank of Korea, which is the Korean Central Bank, said something similar yesterday. They claimed that digital assets don’t threaten their local financial market. According to them, cryptos don’t have a big volume compared to other equity markets and so do not pose a risk.
Image via cryptovest.com
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