Today we've been witnesses of extraordinary news. Bitcoin has reached the new record-high price, moment anticipated by everyone. However, Bitcoin future is certainly unpredictable. Kenneth Rogoff, professor of economics at Harvard University, believes that Bitcoin collapse is inevitable.
Bitcoin half full or half empty?
Currently, we can distinguish two Bitcoin personality types: those who believe it will go to the moon and those who are certain it will collapse. Both sides have their own, compelling, arguments. But as seen today - we're witnessing relevant growth in Bitcoin price. However, according to Kenneth Rogoff, the growth signals the biggest bubble in the world today caused by the first contact with new, disruptive financial technology.
Expert comments
Ken Rogoff is a distinguished academic professor, who served as the chief economist for the IMF. Currently, he is a professor of public policy and economics at Harvard University. Undoubtedly he is an academic expert and his views attract a lot of attention. And his blogpost for the Guardian regarding Bitcoin will probably attract a lot more attention.
In this blogpost, Rogoff writes:
It is hard to see what would stop central banks from creating their own digital currencies and using regulation to tilt the playing field until they win. The long history of currency tells us that what the private sector innovates, the state eventually regulates and appropriates. I have no idea where bitcoin’s price will go over the next couple years, but there is no reason to expect virtual currency to avoid a similar fate.
Bitcoin collapse caused by regulations?
The view is grim, however only in the past month we've seen many governments of developed countries regulating Bitcoin: China, Japan, South Korea, Russia, UAE, United States...
Nobody can predict that
Rogoff doesn't give a specific timeline when Bitcoin collapse is going to happen. In the blogpost, he only presents arguments why it might happen. However, he is also certain about one thing: that technology undermining Bitcoin is something which shapes the future and will thrive in the long term.
To maintain critical perspective we strongly recommend reading his blogpost, as it is full of interesting questions and insights.
