Future of Bitcoin Criticized by Expert US Economists
In an interview, three of America’s leading economists have spoken about Bitcoin and its future, predicting a less favorable outcome for the first digital currency. Among the three speaking figures was Joseph Stiglitz, a Nobel-prize winner. Kenneth Rogoff and Nouriel Roubini also spoke down on Bitcoin, although all three economy leaders expressed different opinions behind their reasons.
Economics Nobel winner, Joseph Stiglitz, said that Bitcoin would crumble after lawmaker interference regarding laundering attempts and tax evasion policies. Due to the anonymous nature of Bitcoin and cryptocurrencies in general, Joseph explains that any attempt at creating a system with clear transactions involving financial institutions will fail if built on a system designed to conceal payment methods.
He further explains that criminal activity is inevitable and that governments will not permit Bitcoin to provide a constant threat.
Joseph, a previous Chief Economist at the WB, explained that no proper regulations have been implemented on Bitcoin due to the limited size of its current market. He explains that as Bitcoin grows and integrates itself deeper, officials will be forced to instill more appropriate rules and regulations.
Nouriel Roubini, an expert that saw all clear signs of the previous international financial crisis, explained that Bitcoin is not a true currency at its core. He says that Bitcoin has no secure value storage and that something so volatile is not a valid payment method. With a currency that is accepted in a few places, not including conferences, he deems the digital coin as an invalid method of payment, thus stating that Bitcoin will inevitably fail.
Kenneth Rogoff believes that Bitcoin will fail due to its veiled nature. As a Harvard professor and former IMF employee, the economic expert said that authorities will eventually pay closer attention to cryptocurrencies in general due to the ensured privacy they provide.
He firmly believes official authorities will definitely intervene at some point and apply the regulations deemed fit to control the anonymity of Bitcoin.