What does the future hold for bitcoin? The unregulated nature of the currency makes it tough to forecast. But Harvard University professor predicts Bitcoin price collapse. Is the sky limit on Bitcoin price? Or it may demise let's see whose prediction comes true in near future.
10 October, AtoZForex - Is the cryptocurrency bitcoin the biggest bubble in the world today? There are too many unanswered questions about cryptocurrencies. Many financial pundits predict Bitcoin will set new milestones in future or may demise?
Joining the prediction group in a collapse of Bitcoin, Harvard University professor Kenneth Rogoff is the latest. Rogoff predicted the price of bitcoin will "collapse" as cryptocurrencies face continued regulatory pressure from governments.
Harvard University professor predicts Bitcoin price collapse
In an article Rogoff says:
"My best guess is that in the long run, the technology will thrive, but that the price of bitcoin will collapse."
However, the professor has given no time frame for this to occur on his prediction about Bitcoin collapse. Hence it is impossible to prove him wrong, even if each Bitcoin becomes worth a million dollars or eventually collapse. Analysts who work in the real world have to make time-bound predictions.
There is a lot of difference between an asset's price doubling in two years and doubling in twenty years. Separately, Rogoff argued that governments efforts to rein in virtual currencies could contribute to a decline.
Another comment on the related issue by Rogoff as below:
"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 the virtual currency to avoid a similar fate."
China ICOs ban and JP Morgan CEO comment
Bitcoin has rallied 365 percent since the start of the year, and now hit a one-month high of $4,638.07. The digital currency and its counterparts operate on encrypted distributed ledgers called Blockchains. Transactions are anonymous, and any central authority cannot manage it, in the way that fiat currencies are by central banks.
Similarly, last month, China stepped up pressure on cryptocurrencies, with a ban on initial coin offerings (ICOs) and the closure of domestic bitcoin exchanges. By contrast, Japan has offered a more welcoming environment. In September, it recognized 11 firms as registered cryptocurrency exchange operators, a decision reflective of a move earlier this year to grant bitcoin legal tender status.
The digital currency has been faced with a number of critics, including JP Morgan CEO Jamie Dimon, commented Bitcoin as a "fraud", and Bridgewater Associates' Ray Dalio, who called it a "bubble".
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