Ex-chief economist for the International Monetary Fund and current Harvard economics professor Kenneth Rogoff believes Bitcoin is more likely worth $100 than $100,000. In a recent article titled "Cryptocurrencies are like lottery tickets that might pay off in future" posted on The Guardian, Rogoff explains his theory on why BTC wont reach $20,000 again.
Rogoff explains in his article that the recent price drop from $20,000 is nothing to worry about considering since December 2012, the price increased from $13 to where it is today. The professor also reiterates a point from his previous works sighting "when it comes to new forms of money, the private sector may innovate, but in due time the government regulates and appropriates."
Rogoff explains that Bitcoins value is more likely worth $100 than $100k. He states that BTC should have some value, insisting that owning cryptocurrency coins is the equivalent of owning lottery tickets "that pay off in a dystopian future where they are used in rogue and failed states, or perhaps in countries where citizens have already lost all semblance of privacy."
Rogoff makes mention to the above quote by using Venezuela as an example of this. The country currently have their own state-backed cryptocurrency called the 'Petro'
The economist explains that the use cases for Bitcoin are limited to 'digital gold', even which it does not offer as much use as real gold. The article also describes how governments will not use btc as it promotes tax evasion and money laundering. Rogoff does admit that "it is too soon to say how the new world of digital currencies will play out", but that the price bust should not have come as a surprise to anyone.
Rogoff concludes that cryptocurrencies are like lottery tickets, "there is a high probability that they are worthless." Also saying that there is an extremely small outside chance that cryptocurrencies could be worth something great one day, but finds those reasons difficult to anticipate.
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