Three of the world’s most respected economists have driven a joint assault on bitcoin, by going on to state that the digital currency will be “regulated into obscurity” as governments all over the globe have to clamp down on tax evasion.
Kenneth Rogoff, Nouriel Roubini, and Joseph Stiglitz have reignited their assault on the cryptocurrency, trusting it will be liable to disastrous falls in the future as authorities have started to take serious actions against offenders using bitcoin to avoid taxes and launder cash.
Joseph Stiglitz, the Nobel-prize winning economist went on to say, “if you are trying to develop a transparent banking system, one cannot have means of payment that is completely based on secrecy, by opening up a hole like bitcoin it is but obvious that all reprehensible activities would go through that hole which not permittable by any government.”
The professor at the Columbia University also went on to add that the main reason worldwide Authorities have not yet clamped down on bitcoin is due to the fact that the market is still very moderate.
According to Stiglitz, “When it started growing, that’s when they (regulators) will use the kill switch.”
The price of the digital currency has been affected drastically as it fell sharply from a high of nearly $20,000 in December 2017 to less than $6,000 at the end of June 2018. Rogoff, the former chief economist at the International Monetary Fund, claims that government regulation would prompt to even further steep falls.
According to the professor at Harvard University, “Bitcoin could easily be worth a mere sum of $100 in a decade from now,” He also added, “The higher authorities will move to regulate anonymous transactions. That is something that is inevitable.”
Pundits have raised arguments claiming that the digital currency has no inherent esteem and can’t promptly be used as a method of payment.
Roubini, the well known bearish NYU economist also known as ‘Dr. Doom’ due to his predictions of the financial crisis, stated: “If the Bitcoin wants to be a currency, it has to be a means of payment, a unit of account and a stable store of value. Currently Not only does it not match any of these criteria’s but it is also not accepted at bitcoin conferences, and how can something that falls 20% within a day and then rises 20% by the next day be a stable store of value?”