Kenneth Rogoff, a Harvard professor, argues that he does not see the potential of long-term success in Bitcoin, except in defensive situations.
Kenneth Rogoff’s doubt over BTC’s success
Bitcoin is often proclaimed as a store of value or as a hedge asset. It has achieved significant mainstream adoption over the past few months.
A public policy and economics professor at Harvard University, Kenneth Rogoff, expressed his uncertainty towards the asset’s success.
Kenneth gave an interview to Bloomberg regarding his opinions on the crypto-market on Thursday. He predicted that Bitcoin would eventually be used in failed states.
His statement claimed that Bitcoin could have a stream of progress in a dystopian future. But other than that, the governments will not allow such pseudonymous transactions to prevail on a vast scale. He added that the government would discredit it. And the regulations are bound to enter as the government will win no matter how developed the technology is.
Bitcoin’s Fair Share of Criticism
Bitcoin has survived a decent amount of criticism in its 12-year history of development.
To name a few examples: Peter Schiff, a gold advocate, often criticizes the technology through his comments. Besides, investor Warren Buffett once called the asset a probable rat poison squared. Financial commentator Dennis Gartman conveyed his skepticism towards Bitcoin at the end of 2020.
However, the adoption of Bitcoin has continued its enhancement as well as an advancement over time. Despite the skeptics, the asset broke over its previous record highs. It recently hit a peak near $42,000. This historic value was achieved post the multiple large mainstream giants announced their BTC purchases in 2020.
Though Bitcoin has been surging, Kenneth’s skepticism continues to prevail. He commented on the surge, stating that it is speculative. Moreover, he even questioned the use of the crypto asset. He argued that it’s just a bubble that constitutes value only because people believe it’s valuable.
According to him, Kenneth’s concluding comment was that the bubble would burst soon if the asset turns of no use in the long run. Instead, he posited the asset as a hedge against dystopia.
In contrast, the crypto-asset market’s leading players argue that Bitcoin is a hedge under less abnormal situations.
