A well-known economist has predicted a sharp drop in the price of bitcoin in the long run.
Kenneth Rogoff, Harvard professor and former chief economist at the International Monetary Fund, said Tuesday on CNBC’s Squawk Box program that he was expecting a $ 100 drop over the last decade .
Rogoff noticed on the show:
“I think Bitcoin will be worth a tiny fraction of what it is now if we leave in 10 years … I would see $ 100 as being much more likely than $ 100,000 in ten years”
Mr Rogoff criticized the use of Bitcoin as a means of payment, arguing that Bitcoin payments are not numerous to be used outside of tax evasion and money laundering. Indeed, the former IMF economist has put forward what one might call an ultra-bearish position on bitcoin prices in the past. Last October, he wrote an editorial for The Guardian claiming that the price of bitcoin would collapse even if the underlying technology thrived.
In part, he based this theory on the idea that governments would not allow decentralized or anonymous crypto-currencies to completely replace the state’s published call for bids. .
Other researchers, examining the value proposition of Bitcoin from the point of view of payments, have drawn other conclusions in the past. Digital Asset Research estimated that the use cases of bitcoin transactions in 2017 would have set a value of about $ 2,074 – even in the absence of speculative trading or value trading.
And on the front of the illicit activities, a study of British analysis firm of blockchain Elliptic found that only 0.61% of the money involved in European bitcoin exchanges and the services of conversion were verifiably connected to these uses.
Although Rogoff may not be the biggest bitcoin fan, he always defended Tuesday’s global regulatory response rather than categorical bans.
“It really takes global regulation, even if the United States is going after it and China is going to collapse, but not Japan, people will still be able to whitewash. money across Japan “.
Japan is a unique example, considering that the nation may have one of the most mature regulatory frameworks in the world to date. Japanese regulators announced in February that they planned to step up on-site inspections – a notable position given that the National Police Agency reportedly identified 669 cases of alleged money laundering on the exchange platforms between April and December 2017.
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Disclaimer: This article should not be considered as investment advice and is not intended to do so. Please conduct your own thorough research before investing in a cryptocurrency.