According to Kenneth Rogoff, bitcoin is just a bubble and is unreasonably overpriced.
Bitcoin, which is often advertised as a savings vehicle or hedge asset, has become widespread over the past few months. But Kenneth Rogoff, a professor of public policy and economics at Harvard University, doubts the asset’s success, writes CoinTelegraph.
“I see Bitcoin being used in failed states,” Rogoff said in an interview with Bloomberg on Thursday, adding:
“It probably, you know, could find some use in a dystopian future, but I don’t think governments are going to allow pseudo-anonymous transactions on a large scale. They just won’t allow it. The regulation will come. The government will win. It doesn’t matter what the technology is.”
Bitcoin has endured a lot of criticism in its 12-year history. Gold advocate Peter Schiff has often spoken out against the technology , investor Warren Buffett once called the asset “probably rat poison squared,” and financial columnist Dennis Gartman expressed skepticism about Bitcoin in late 2020.
However, Bitcoin acceptance continues to rise despite the skeptics. The asset has surpassed previous record price highs, reaching a recent peak near $42,000 after several major major companies announced their purchases of BTC in 2020.
“I certainly think I agree that bitcoin is speculative,” Rogoff said of Bitcoin.
“I’ve been skeptical of bitcoin, and the price has certainly gone up, but there’s sort of a definitive question about what the benefits are. Is it valuable just because people think it’s valuable. It’s a bubble that could burst.”
“I think in the long run, if there is no benefit, yes, the bubble will burst,” Rogoff said. “I hope there’s no such valuable use, but I suppose it’s a defense against a dystopia.”
In contrast, leaders in the crypto industry present Bitcoin as a hedging tool in less abnormal circumstances.