„Bitcoin is a speculative bubble that will burst“.
Harvard University economics professor: „Bitcoin is a speculative bubble that will burst“.
Harvard professor Kenneth Rogoff sees Bitcoin as a „speculative product“ that can only work in a dystopian future.
Bitcoin’s (BTC) current record run relies in large part on the narrative that the market-leading cryptocurrency serves as a store of value and a hedge. Kenneth Rogoff, an economics professor at the prestigious Harvard University, however, disagrees with this tenor and sees it more as a speculative bubble.
„I could imagine Bitcoin working in failed states,“ as Rogoff puts the cryptocurrency’s chances of success as relatively low in an interview with Bloomberg. To that effect, he elaborates:
„It’s conceivable that it could play a role in a dystopian future, but otherwise governments simply won’t allow anonymous transactions on a large scale. That will never happen. The regulators step in at some point. The government wins. No matter what the technology is.“
In its 12-year lifespan, Bitcoin has defied many similar prophecies of doom. Gold advocate Peter Schiff regularly rails against Bitcoin Up the cryptocurrency and investment guru Warren Buffett also once called Bitcoin „rat poison“. Most recently, financial expert Dennis Gartman had criticised it.
Investors and companies are getting involved
Regardless, Bitcoin has been able to break its previous high in recent months, establishing a new record high at $42,000 after more and more big investors and companies are getting involved with the cryptocurrency.
„I agree with the thesis that it is a speculative product,“ as Rogoff classifies Bitcoin.
To this he adds:
„I’m a sceptic about Bitcoin. The price has gone up, but the question is what is the point behind it? Does it have value just because people think it is valuable? If so, it would be a speculative bubble that will eventually burst.“
„If there is no real purpose for it in the long run, then the bubble will burst,“ the Harvard professor concludes. To which he concludes: „I don’t think it will find a real use yet, but at least it’s a hedge against a dystopian future.
Most crypto experts vehemently disagree with this view, however, because they believe that Bitcoin is not only suitable as a hedge in such an extreme situation.