Harvard crypto skeptic calls Bitcoin ‘hedge against dystopia’

Often touted as a store of value or a hedge asset, Bitcoin (BTC) has gained significant mainstream adoption in recent months. However, Kenneth Rogoff, a professor of public policy 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 on Thursday, adding:

“It is imaginable, you know, it could have some use in a dystopian future, but I think the governments are not going to allow large-scale pseudonym transactions. They’re not going to allow it. The regulation will come in. The government will win. It doesn’t matter what the technology is. “

Bitcoin has weathered its fair share of criticism throughout its 12-year history. Gold advocate Peter Schiff often comments against the technology, investor Warren Buffett once referred to the asset as “probably a toxic poison square” and financial commentator Dennis Gartman expressed skepticism toward Bitcoin in late 2020, just to name a few examples.

Bitcoin adoption has continued to grow despite skeptics, however. The asset broke past previous all-time price peaks, hitting a recent high near $ 42,000 after several major mainstream companies publicized their BTC purchases in 2020.

“I definitely think I agree it’s speculative,” Rogoff said of Bitcoin.

He added:

“I’ve been a Bitcoin skeptic, and certainly the price has gone up, but there’s sort of a question in the end what the use is. Is it worth it just because people think it be valuable? That’s a bubble that would blow up. “

“I think over the long term, if there’s no use, yes, the bubble will burst,” Rogoff posted. “Hopefully it’s not such a valuable material, but it’s probably a hedge against dystopia.”

In contrast, leaders in the crypto industry have introduced Bitcoin as a hedge under less abnormal circumstances.