The nascent cryptocurrency market which is still developing in terms of technology, practices, and community while facing the obstructions to the likes of volatility and illegal usage among others is going to be clamped down hard by the regulators and crash severely according to the leading world economists Joseph Stiglitz, Kenneth Rogoff & Nouriel Roubini.
Crypto rant by Joseph Stiglitz, Kenneth Rogoff & Nouriel Roubini
Right now, the bitcoin price has lost approximately 65 percent of its value from its peak of $19,500 in December last year. Bitcoin Price had a rough past few months. However, according to the world’s leading economists, the situation is only going to get worse.
The Nobel Prize-winning economist and the former chief economist of the World Bank, Joseph Stiglitz recently stated,
“You cannot have a means of payment that is based on secrecy when you’re trying to create a transparent banking system.”
According to him, once cryptocurrencies become significant enough, the government and authorities will take a hammer and clamp down hard on them. Pointing out to the illegal use of bitcoin and other cryptos, he says,
“If you open up a hole like bitcoin then all the nefarious activity will go through that hole, and no government can allow that.”
Stiglitz is not alone in this attack, economists Kenneth Rogoff and Nouriel Roubini also shared their bullish sentiments.
“Dr. Doom” Nouriel Roubini who anticipated the financial crisis of 2008 is not new to crypto rant. He has previously called Bitcoin “Bull–t” and that cryptocurrencies are a chaos for payments and a lot more. This time, Roubini has made his point on Bitcoin as a currency, he stated,
“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 per cent one day and then rises 20 per cent the next be a stable store of value.”
Bitcoin to be regulated into oblivion & price gonna crash hard
Kenneth Rogoff, who is the former chief economist of the International Monetary Fund (IMF) believes regulations will be coming and they would only trigger Bitcoin prices to extreme lows. He believes it is destined to crash as Rogoff commented,
“Bitcoin could easily be worth just $100 in 10 years. People in power will move to regulate anonymous transactions. That you can be sure of.”
These economists also warn that government will further strike down on the criminals that are using cryptocurrency to launder money and avoid the taxes. On one side, the world economists are outright against bitcoin and cryptocurrencies, while on the other side experts are still sticking to their Bitcoin price predictions. Recently, Clem Chambers also shared his thoughts on Bitcoin price said that it has the possibility of hitting $2k before it reaches $20k and even $100k.
Cryptocurrency is still in its nascent stage and has years on its way before it begins to start gaining stability and lose its high volatility nature. As the technology, investors, and market will progress, a sturdy foundation will be built. However, on its way to that level, there will surely come the obstructions in the form of frauds, illegal uses, and extreme fluctuations.
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com