In ten years, Bitcoin is likely to be more than $ 100 to $ 100,000, says Harvard economist
Harvard University professor and economist Kenneth Rogoff said on Tuesday that the potential for bitcoin prices to drop to $ 100 in a decade is more than a $ 100,000 digital currency deal in a decade.
“I think bitcoin will be worth a little bit of what it is now if we get out of it ten years from now … I’d see that $ 100 in ten years’ time is much more likely than $ 100,000,” Rogoff told CNBC’s “Squawk Box.”
“If you eliminate the possibility of money laundering and tax evasion, its actual uses as a means of transaction are minimal,” said the former chief economist of the International Monetary Fund (IMF).
Many illegal transactions are linked to Bitcoin, and their calculations vary depending on the use of digital currency used in illegal activities. Shone Anstey, co-founder and chairman of the Blockchain Intelligence Group, estimated that the level of illegal transactions fell by 20 percent in 2016 and was “significantly lower than that” in 2017.
Rogoff said the government-introduced regulations would lead to a drop in bitcoin prices, although he stressed that it would take time to develop a global regulatory framework.
“It has to be a global regulation. Even if the U.S. thinks about it and China goes down, but not Japan, people will be able to launder money across Japan,” he said.
According to the CoinDesk industrial site, Bitcoin traded around $ 11,242.61 on Tuesday morning trading in Asia. The price of digital currency fell from a record high of $ 19,000 in December last year.
Authorities are acting passively about regulating bitcoin, which is due to the prediction of the technology behind digital currency, according to Rogoff.
“They want to see the advancement of technology,” Rogoff said, noting that the private sector has historically “designed everything” in the history of currency, from standardized coins to paper currency.
Bitcoin is a significant growth area as an application of blockchain technology that allows you to maintain and record transactions.
However, there have also been claims in the past about falling bitcoin prices. Before selling bitcoin in December last year, Rogoff said last October that digital currency calculations would “collapse” between governments’ attempts to regulate space.