Nobel Prize winner and American Economist, Joseph Stiglitz has predicted that Bitcoin’s value could depreciate massively within ten years. The Columbia University professor claimed that Bitcoin could even go to as low as $100 after just a decade.
Stiglitz explained that the anonymous nature behind cryptocurrencies like Bitcoin contributes to the problem. He stated:
“You cannot have a means of payment that is based on secrecy when you’re trying to create a transparent banking system.”
The Nobel Prize-winning economist believes that the anonymity behind cryptocurrency transactions could serve as a cesspool for criminal activities like money laundering.
He explained:
“If you open up a hole like bitcoin then all the nefarious activity will go through that hole, and no government can allow that.”
Risky Business
The former World Bank chief economist discussed the potential risks of decentralized cryptocurrencies, which tend to obfuscate the true identity of users letting them carry out illegal operations much easier. Express shared Stiglitz claimed that central banks have yet to target cryptocurrencies like Bitcoin since its market is still pretty niche.
However, Stiglitz emphasized that once it “becomes significant,” then central banks will “use the hammer” and Bitcoin will be “regulated into oblivion.” He stressed:
“People in power will move to regulate anonymous transactions. That you can be sure of.”
On the other hand, the Bank Of England division head Martin Ehteridge claimed that cryptocurrencies don’t threaten financial stability. Furthermore, National Crime Agency director Donald Toon spoke to the members of the parliament in a meeting the previous week and said that money laundering cases involving cryptocurrencies were quite minimal.
Toon even stressed that cryptocurrency-involved money laundering cases pale in comparison to other much larger money laundering operations.
Fall From Grace
Meanwhile, the popular cryptocurrency Bitcoin still suffers from price drops since peaking at almost $20,000 last year. There are many reasons as to why Bitcoin lost its former stature including fear of regulation, recent hack thefts, and even China’s banning, among others. BGR shared that market manipulation could also be a factor responsible for the volatility and erratic spikes in Bitcoin’s value.
Bitcoin’s value has recovered enough recently to get it over its lowest slump from the previous weeks. However, reports said that instability is still an issue as Bitcoin’s price could drastically take a turn for the worse at any given moment.
It’s believed that China’s strict regulation against cryptocurrency trading and businesses could have also caused a significant blow on the global cryptocurrency market as well.
