World Economic Forum in Davos: bitcoin is a bubble that will soon burst

The Davos Economic Forum may soon become a veritable mine of cryptocurrency quotes. Kenneth Rogoff, professor at Harvard University, said there is a bitcoin that is a typical bubble and there is no chance of replacing traditional currencies.

Rogoff has long been an opponent of digital currencies. He believes that they are even an academic example of a speculative bubble.

Conflict of generations?

He once compared the purchase of cryptocurrencies to buy coupons in the lottery. It turns out, however, that in his own home he has contact with a crypto-enthusiast:

“In 2012, when my daughter was 13 years old, she dug 24 bitcoins on her computer. She said someone offered her an Amazon gift card in exchange and asked her what she should do. Then I certainly said that she should make the transaction. ”

He did not add what his daughter thinks about the transaction. In his opinion, cryptocurrencies could only have significance in dystopian reality. Despite this, they will lose their target in our world. A few months ago, CNBC said:

“I think in 10 years bitcoin will be worth a small fraction of what now. It is much more likely that it will be valued at $ 100 than $ 100,000. ”

He believes that such a feature of digital currencies as anonymity will make governments be provoked to destroy them.

Bitcoin is useless

The voice on the crypto account in Davos was also taken by Huw Van Steenis, senior adviser to the governor of the Bank of England. This important British official presents a different approach. He thinks that bitcoin and its derivatives are rather unlikely:

“Traditional banks are trying to counter the threats coming from these new technology platforms. But cryptocurrencies are not high on my list of worries. ”

As you can see, the Bank of England rather ignores the topic than it worries about.

The forum in Davos is now a place where the group of the most important people in the world debates. Among the important politicians are: Japan’s Prime Minister Shinzo Abe, head of the Brazilian government Jari Bolsonaro, German Chancellor Angela Merkel, Vice President of China Wang Qishan, Prime Minister of Italy Giuseppe Conte, Iraqi President Barham Salih and Israeli Prime Minister Benjamin Netanyahu.

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