The survival of Bitcoin is dwindling based on the three recognized American economists. This was based on their recent interviews with Financial News.
Citing the lack of intrinsic value and price volatility, Joseph Stiglitz, Kenneth Rogoff, and Nouriel Roubini all noted that Bitcoin is deemed to fail as a currency.
Stiglitz, a Nobel Prize economist and a professor of the Columbia University, lambasted Bitcoin’s anonymity. He added the cryptocurrency does not provide ‘a transparent banking system.’
The economist stressed that most cryptocurrencies like Bitcoin are prone to ‘fraudulent activities,” where no current government will allow.
Stiglitz cited most global financial regulators have been lenient since the crypto market is still relatively young, saying when the cryptocurrency market starts to grow, it will soon be heavily regulated.
Rogoff, an ex-chief economist at the International Monetary Fund (IMF), a Harvard University professor and a professional chess player, agreed with Stiglitz’ comments on the Bitcoin.
He said the prominent cryptocurrency could be valued as low as $100 after a decade. He cited the government involvement in the crypto industry, saying those in power will be in charge of regulating ‘anonymous transactions.’
For NYU economist Roubini or popularly known as “Dr. Doom,” who reportedly predicted the 2008 financial crisis, criticized that Bitcoin has not fulfilled any of the money’s characteristics.
He stressed Bitcoin’s volatility, adding this currency “is not even accepted as payment during Bitcoin conferences.” He queried how can a currency declines 20 percent in a day and then increases 20 percent in value the next to be a stable store of value.
In a recent interview, Stiglitz noted some governments worldwide have recognized crypto as a phenomenon based on its current volumes and does not post any threat in the traditional financial markets.
Previously, the Bank of Korea noted that crypto assets do not harm the local financial market with its limited volume compared to other equity markets.
In late May this, the Dutch government claimed that cryptocurrencies have no detrimental effects on the country’s financial stability, adding their limited involvement to the traditional financial systems.