Spike in Cryptocurrency Values Creates Controversies among Economic Experts

Cryptocurrencies are facing dramatic changes in values over the past few days. All this is due to boom in the prices of these currencies and expected imposition of regulations in various countries. The value of the top three cryptocurrencies of the world Bitcoin, Ethereum, and Ripple had touched an all time high in the last week of December.

Bitcoin is the leading cryptocurrency that had touched almost $20,000 in the closing days of 2017. This boom in prices of the coins has created strange notions in the minds of financial experts all across the world. Some are expecting that the value of Bitcoin will touch $ 1 million in 2020. And, the others are supporters of imposing bans on these.

One of the greatest controversies that have come up yesterday is among the American Nobel Prize winner economist Joseph Stiglitz and CEO of China’s first cryptocurrency exchange Bobby Lee. Both of the experts have put forward their own logics related with the cryptocurrencies.

Joseph Stiglitz is of the view that the governments across the world should think of imposing bans in the trade of cryptocurrencies. He says that these are one of the major causes of money laundering across the world. He also says that all the countries have their own physical currencies and can do trading in these currencies. According to him the craze for cryptocurrency is just for secrecy. This is because it helps people evade taxes. He affirms that the world is moving towards electronic payment mechanism and this problem of slower cross border payments would be solves in near future.

Joseph Stiglitz says that you do not need cryptocurrencies for this new mechanism that we are going to adopt. Talking to Bloomberg, he stresses the imposition of regulations on cryptocurrencies. He wants the regulations to be imposed to save the world from the curse of money laundering. He calls the cryptocurrencies as abuses. He is a staunch believer that the demand of cryptocurrencies across the world is due to their being abuses. The crypto experts are of the view that this would further degrade the cryptocurrencies across the world and their values may further come down.

On the other hand, another economist and the CEO of China’s first crypto exchange Bobby Lee says that in spite of the regulations, the value of Bitcoin could hit $ 1 million in next twenty years. He expects that in five to ten years, cryptocurrencies will prevail the economic systems across the world. He further adds that people will own cryptocurrencies like they have bank accounts nowadays. This is because people prefer to own wealth in the form of assets instead of paper money.

In the end, we can say that the soaring prices of cryptocurrencies have sky-rocketed their demands across the nations. With every passing day, more and more people are being attracted towards investing in these currencies. The experts are hopeful that after the imposition of regulations by the governments, the cryptocurrencies will be legalized and their values will hit all time high values.