Undoubtedly one of the most polarizing areas of the investment world in recent memory, bitcoin has divided those in the finance world into two starkly distinct camps: on one side, there are those who stand in support of the world’s largest cryptocurrency, either as early adopters or later converts, while on the other, there are analysts, CEOs, and others who stand firmly against bitcoin. As the price of BTC climbs and falls, those who believe that the cryptocurrency is destined to change the world hold out bullish hope, while those who believe it’s all a bubble anticipate the moment when the space will come crashing down. Now, three prominent economists have recently added their names to the list of experts predicting that bitcoin will fizzle.
Stiglitz, Roubini, and Rogoff
The three economists are Joseph Stiglitz, winner of the Nobel Prize for economic studies and professor at Columbia University, NYU’s Nouriel Roubini, known as “Dr. Doom” for his bearish views, and Kenneth Rogoff, former IMF chief economist. The three experts each spoke out against bitcoin in a single day, according to a report by Cryptovest.
Stiglitz suggested that BTC would fail after governments begin to fight back against money laundering and other fraudulent practices that criminals perform with the aid of cryptocurrency. “You cannot have a means of payment that is based on secrecy when you’re trying to create a transparent banking system,” he said. “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 predicts that governments will “use the hammer” to act against BTC if it grows beyond a certain threshold.
Lack of Viability
Roubini pointed to a lack of viability in mainstream payment systems as a crucial problem for bitcoin. “Bitcoin is not even accepted at bitcoin conferences,” he said, “and how can something that falls 20% one day and then rises 20% the next be a stable store of value?”
Rogoff, a professor at Harvard, believes that BTC’s anonymity will be its downfall. “Bitcoin could easily be worth just $100 in 10 years,” he said. “People in power will move to regulate anonymous transactions. That you can be sure of.”
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