The not so bright future of Bitcoin explained by three great economists

in busy •  6 years ago 

The use of cryptocurrencies has increased over time, that is undeniable. However, this does not mean that the group of people who do not agree with digital currencies have lost strength. Recently, three great figures of the economic sector explained why Bitcoin in specific is not so great.

Joseph Stiglitz, Kenneth Rogoff and Nouriel Roubini share an unfavorable opinion about digital currencies, especially Bitcoin. Among its main reasons is the problem of anonymity, which can benefit criminal groups and make it easier to commit crimes such as money laundering or tax evasion.

According to them, the same governments will be responsible for the fall of digital currencies. This is because they will be forced to place more and more regulations on these lawless currencies, to protect their financial systems, internal economy and their population.

"You can not have a means of payment based on secrecy when it comes to creating a transparent banking system," Stiglitz, winner of the Nobel Prize in economics, told Financial News. "If you open a hole like Bitcoin, all the nefarious activity will go through that hole, and no government can allow that."

He also added that the only reason why governments had not taken stronger positions against cryptocurrencies was because that market could still be considered relatively small.

For his part, Rogoff, a former chief economist at the International Monetary Fund (IMF), is confident that government regulations will cause further declines in the price of cryptocurrencies. "The people in power will move to regulate anonymous transactions. You can be sure of that. " In such a way that, "Bitcoin could easily be worth only US $ 100 in 10 years".

Rogoff's predictions are not encouraging for crypto enthusiasts. And in this same line remains the last economist, Roubini, famous for predicting the financial crisis of 2008. He ruled that "for Bitcoin to be a currency it has to be a unit of account, means of payment and stable store of value. It is not any of these. "

This professional, to reinforce his point, even assured that Bitcoin is not even accepted in the Bitcoin conferences, with what can be demonstrated, according to him, the little confidence that the fans of the cryptocurrencies have towards them.

Although members of the crypto community have debated these points on numerous occasions and explained why they are not valid, there is something in the statements of economists that is a latent problem: the use of digital currencies for money laundering and other activities illicit

Cryptocurrencies offer great advantages, but anonymity is a double-edged sword, which governments will have to face sooner or later. This ignites the alarms of lovers of digital currencies, since, most likely, the competent authorities of each country will establish more and more regulations in order to diminish to a minimum the criminal activities with Bitcoin.

However, the more regulations, the more possibilities there are for prices to fall and for cryptocurrencies to approach Rogoff's pessimistic predictions.

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