KANALCOIN NEWS – Professor of economics from Harvard University, Kenneth Rogoff, believes that the government will soon ban bitcoin someday. Rogoff believes that the government will not allow bitcoin to grow on a large scale.
A professor of economics from Harvard University, Kenneth Rogoff, gave his opinion on bitcoin in an interview in Bloomberg Surveillance last week. In his statement, Rogoff admits to being skeptical of bitcoin all along.
Apart from that, Rogoff also said that bitcoin is actually speculative and only valuable because people think bitcoin is something valuable.
“This is speculative. I have become a skeptic of bitcoin and of course the price has gone up,” Rogoff told Bloomberg as reported by Kanalcoin.com from News.Bitcoin.com.
“There’s sort of a final question about what it’s good for. Is it only valuable because people find it valuable? It’s a bubble that’s about to burst,” Rogoff continued.
The man who also serves as a public policy professor Thomas D. Cabot said that over time bitcoin would be banned by the government. This is because transactions in bitcoin use pseudonyms and not the real name of the wallet owner.
In fact, Rogoff believes that the government will win in its battle with bitcoin. Governments will create regulations and regulate bitcoin as best they can using any technology.
“I can see bitcoins being used in a failed state. It’s conceivable it could be used in a dystopian future,” said Rogoff.
“I don’t think the government will allow pseudonym transactions on a large scale. They just won’t allow it. Regulations will enter. The government will win. It doesn’t matter what the technology is.”
“So, I think in the long term if it doesn’t do any good, the bubble will burst. I wish there wasn’t such a valuable use, but I think it’s a safeguard against dystopia,” Rogoff continued.
Rogoff himself is indeed known as one of the people who is skeptical of the existence of bitcoin to date. The man who served as Chief Economist at the International Monetary Fund (IMF) in 2001-2003 once made a controversial statement about bitcoin in 2018.
At that time, Rogoff was involved in an interview with CNBC and said that cryptocurrencies were actually more worthy of being worth 100 dollars per coin than 100 thousand dollars in the next decade.
However, Rogoff says what makes it so expensive is the emergence of a very high probability of crime in the world of bitcoin, such as money laundering and tax evasion. So, the transaction price is very high.
“Basically, if you eliminate the possibility of money laundering and tax evasion, the actual use as a means of transaction is very small,” said Rogoff.
Rogoff also briefly commented on the statement by the United States Minister of Finance, Janet Yellen, who said he would create special regulations for cryptocurrencies. According to Rogoff, Yellen’s statement is on the whole correct. However, he believes there are still cryptocurrencies lobbying the government.
“Yes, that’s true overall. It needs to be set. I think there’s a government in it. It is not widely used and I suspect that although bitcoin lobbyists have managed to get their hands on it in a few places, it will not last long,” said Rogoff.
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