Harvard crypto skeptic calls Bitcoin a ‘hedge against dystopia’

Regulation

Often touted as a store of value or hedge asset, Bitcoin (BTC) has gained significant mainstream adoption over the past several months. Kenneth Rogoff, a public policy and economics professor at Harvard University, doubts the asset’s success, however. 

“I can see Bitcoin being used in failed states,” Rogoff said in a Bloomberg interview on Thursday, adding:

“It’s conceivable, you know, it could have some use in a dystopian future, but I think the governments are not going to allow pseudonymous transactions on a big scale. They’re just not going to allow it. The regulation will come in. The government will win. It doesn’t matter what the technology is.”

Bitcoin has weathered its fair share of criticisms through its 12-year history. Gold advocate Peter Schiff often comments against the technology, investor Warren Buffett once referred to the asset as “probably rat poison squared”, and financial commentator Dennis Gartman expressed skepticism toward Bitcoin in late 2020, just to name a few examples.

Bitcoin adoption has continued to grow despite the skeptics, however. The asset broke past previous all-time price highs, hitting a recent peak near $42,000 after multiple large mainstream companies publicized their BTC purchases in 2020.

“I certainly think I agree that it’s speculative,” Rogoff said of Bitcoin.

He added:

“I’ve been a Bitcoin skeptic and certainly the price has gone up, but there’s sort of an ultimate question of what’s the use. Is it just valuable because people think it’s valuable. That is a bubble that would blow up.”

“I think, over the long-run, if there’s not a use, yes, the bubble will burst,” Rogoff posited. “I hope there’s not such a valuable use but I suppose it’s a hedge against dystopia.”

In contrast, leaders in the crypto industry have presented Bitcoin as a hedge under less abnormal circumstances.

Products You May Like

Articles You May Like

Who takes gold in the crypto and blockchain Olympics?
Countries representing over 90% of global GDP are exploring CBDCs
Buterin’s $1B SHIB donation tricky to cash out, says fund manager
Altcoins pump while traders anticipate a lower support test from Bitcoin
October 2020 Déjà vu? Bitcoin pullback at $38K has traders at odds over next move

Leave a Reply

Your email address will not be published. Required fields are marked *