Expert forecasts doom for Bitcoin price.
Kenneth Rogoff expresses concern over the limitations of the cryptocurrency.
Apart from its use in criminality, functions are minimal, he opines.
Regulations will be the saving grace for bitcoin and cryptocurrency. This is according to economic expert, Kenneth Rogoff. Still, skeptics are still in a tug of war on the issue of regulation and the role of cryptocurrency in abetting criminal activity. Owing to the skepticism, bitcoin could be headed for a collapse.
Mr. Rogoff told CNBC that bitcoin might be worth a small fraction of its current price in 10 years.
Perhaps in a darker tone, the economic guru linked cryptocurrency to money laundering and tax evasion. He added that the transactional viability of cryptocurrency was minimal.
However, cryptocurrency proponents were quick to trash Mr. Rogoff’s claims as ‘nonsense.’ They went as far as insisting they would hold on to the currencies because “they are beautiful.”
However, while he remained skeptical on the issue, he said global regulation would be the key that legitimizes bitcoin and other cryptocurrencies.
According to Rogoff, global regulation would be needed so as not to leave any loopholes. He gave the example of people using Japan as a conduit to conduct illicit activity.
He rubbished fears of bitcoin crashing to zero owing to ‘rogue nations’ willing to accept cryptocurrency.
Presenting at the Scottish Economics conference in Edinburgh earlier in the week, governor of the Bank of England, Mark Carney came out harshly against cryptocurrency.
He did not mince his words as he called Bitcoin the “classic hallmarks of bubbles” which attract “fools.”
In his speech, Carney insisted that cryptocurrency’s free ride on the decentralization cruise ship had to stop. He told the audience that crypto asset exchanges needed to be put through the same standard as other fiat currencies if it was to gain legitimacy in the global financial system.
He said that regulating crypto assets would favor the currencies but added that with the privileges, came responsibility.
In light of Mr. Carney’s less than flattering remarks, other cryptocurrency experts have agreed with his sentiments. They agreed that regulation might help currencies such as Bitcoin, Dash, Ripple, and Litecoin to recover sustainably. This was of course in light of recent drastic falls in price across the board for most cryptocurrencies.
Founder and CEO of independent financial consultancy, deVere Group, Nigel Green also lent his support for regulation terming the move as pragmatic. He stated that any steps towards global regulation should be championed.
Green was quick to vouch for the BoE, calling it one of the world’s most influential central banks. He added that other banks could emulate the policies of BoE