Nobel Prize-winning economist Joseph Stiglitz has suggested a dark path ahead for Bitcoin and cryptocurrencies…
Fears have been expressed for the future of Bitcoin and crypto, with former chief economist of the World Bank, Joseph Stiglitz, warning that a clampdown is coming on digital currencies.
Chatting to Financial News, Stiglitz paints a picture of regulations potentially hammering the price of Bitcoin down to almost insignificance. He argues that the market for cryptocurrencies is small at the moment, which is why it’s evading much in the way of regulation. But that once it “becomes significant”, then “they will use the hammer”. ‘They’ being legislators and governments.
Stiglitz previously won the Nobel Prize for economic sciences, and his beef with cryptocurrency is the anonymity of it. “You cannot have a means of payment that is based on secrecy when you’re trying to create a transparent banking system”, he argued.
Joining him in the words of caution is former chief economist at the International Monetary Fund, Kenneth Rogoff. He argued that “Bitcoin could easily be worth just $100 in ten years”, adding “people in power will move to regulate anonymous transactions. That you can be sure of”.
This all potentially paints a dour picture for cryptocurrencies, and it comes following a turbulent six months that has seen the price of Bitcoin drop below $6000 in recent weeks, having peaked at just shy of $20,000 last December.
That said, there are many taking a counter position, with more and more financial institutions exploring cryptocurrency as a future revenue source. Furthermore, there are as many people predicting a soar in the future price of Bitcoin for those who hold their investment, as those suggesting the currency has peaked.
Time, as always, will tell…