The popular US financier Steve Hanke believes that bitcoin is a highly speculative asset and that its fundamental value is zero, but is it? Let’s find out more in our upcoming Bitcoin news.
The prominent US financier Steve Hanke revealed his negative stance on BTC and accoridng to him the main cryptocurrency is highly volatile and has no real, fundamental value. Hanke is also a professor of Applied Economics at the John Hopkins University and he took it to Twitter to warn investors to stay away from BTC. The professor doesn’t see the leading digital asset as a real currency and even called it “snake oil.” he continued:
“Its extreme volatility, susceptibility to fraud, and uncertainty are all reasons why BTC will never be suitable as a true currency.”
While Bitcoin’s price fluctuations are present, it is still a new asset that is able to overcome its volatile nature in the next few years especially with the implementation of real legislation. SkyBridge’s CEO Anthony Scramucci compared Bitcoin to Amazon and reminded that the e-commerce giant was unstable when it was first starting out but now is one of the biggest companies in the world:
“Bitcoin is volatile because it is in its early adoption stage. Amazon had the same volatile curve 24 years ago. But if you have put $10,000 on Amazon at its IPO, you would have $21 million today.”
Hanke didn’t stop there as he concluded that BTC is highly speculative and has a fundamental value of zero. His words so have merit as BTC just like other investments is a speculative tool and some other traders and investors used it to generate profits. However, there are others that prefer to hold it as they see it as a safe store of value. Prominent names here include the investor’s Paul Tudor Jones and Stan Druckenmiller. Larger corporations like Microstrategy and Tesla also purchase huge chunks of the asset so, despite Hanke claiming that BTC has a fundamental value of zero, the asset saw a huge milestone adoption and saw El Salvador making it a legal tender in the country.
Hanke previously bashed El Salvador’s move, spoke about how bitcoin’s susceptibility to fraud is extremely important in this case. The point is controversial as its blockchain is fully transparent and all transactions are recorded on the ledger. As such, the crypto’s nature makes it a highly inappropriate tool for those that want to hide something.
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