Bitcoin (BTC) is often touted as a store of value or a hedge asset and has gained significant mainstream acceptance in recent months. However, Kenneth Rogoff, a professor of politics and economics at Harvard University, doubts the asset’s success.
“I can see Bitcoin being used in failed states,” Rogoff said in a Bloomberg interview Thursday, adding:
“It is conceivable that it could be of use in a dystopian future, but I think governments will not allow pseudonymous transactions on a large scale. They just won’t let you. The regulation will come into force. The government will win. It doesn’t matter what the technology is. “
Bitcoin has weathered a number of criticisms in its 12-year history. Gold attorney Peter Schiff frequently speaks out against the technology, investor Warren Buffett once described the asset as “likely squared rat poison” and financial commentator Dennis Gartman expressed skepticism about Bitcoin in late 2020, to name just a few examples.
However, the acceptance of Bitcoin has continued to increase despite the skeptics. The asset surpassed all-time highs and recently peaked near $ 42,000 after several major mainstream companies published their BTC purchases in 2020.
“I think I agree that it is speculative,” Rogoff said of Bitcoin.
“I was a bitcoin skeptic and certainly the price has gone up, but there is kind of an ultimate question what the benefit is. Is it just valuable because people think it is valuable? This is a bubble that is exploding would.”
“I think in the long run the bubble will burst if there is no benefit,” noted Rogoff. “I hope there isn’t such a valuable use, but I suppose it’s a hedge against dystopia.”
In contrast, leaders in the crypto industry have envisioned Bitcoin as a hedge in less unusual circumstances.