Kenneth Rogoff, a former IMF chief economist and Professor of Economics and Public Policy at Harvard University, has revealed his thought on the cryptocurrency market.
According to Kenneth, the likes of bitcoin could become worthless but there is a chance they become very valuable. He stated this in a recent article posted by The Guardian.
He further called Bitcoin (BTC) “a lottery ticket,” and referred to the past history of the volatility of the emerging asset class as an indicator of the inevitable doom of the cryptocurrency.
Rogoff went on to explain 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.
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."
Although Bitcoin is one of the most popular and resilient virtual currencies in the market, there are some questions that Mr. Rogoff has related to it. He said that it is unsustainable to compare Bitcoin with gold because real gold has several applications.
Furthermore, he went on explaining that large economies will not tolerate virtual currencies in their current state. One of the main reasons behind this decision is the fact that they facilitate money laundering activities and they work anonymously and with pseudonyms.