Bitcoin (BTC), often described as a store with value or securities, has seen a wide adoption in recent months. However, Kenneth Rogoff, a professor of public policy and economics at Harvard University, is in doubt about the success of the assets.
“I see Bitcoin being used in failed states,” Rogoff told Bloomberg on Thursday, adding:
“It may, you know, have some benefits in a miserable future, but I think governments will not allow transactions under pseudonyms on a large scale. They just will not allow it. The decree will come. The government will benefit. It does not matter what technology is. ”
Bitcoin has endured its fair share of cash throughout its 12-year history. Gold lawyer Peter Schiff has repeatedly spoken out against the technology, investor Warren Buffett once described the asset as “possibly a rat poison box”, and financial columnist Dennis Hartman expressed doubts about Bitcoin in late 2020, to name a few.
Adoption of Bitcoin continues to grow despite skeptics. The asset surpassed previous record highs, reaching a recent high of around $ 42,000 after several large companies announced their bitcoin purchases for 2020.
“I absolutely believe I agree that this is just speculation,” Rogoff said of Bitcoin.
“I was skeptical of bitcoin and of course the price went up, but it’s a bit of a final question: What’s the benefit. Is it just valuable because people think it’s valuable? It’s a bubble that can burst.”
“I think in the long run, if there is no point, yes, the bubble will burst,” Rogoff said. “I hope it will not be such a valuable use, but I think it is a safeguard against dystopia.”
In contrast, leaders of the crypto industry offered Bitcoin as a hedge in less deviating circumstances.