Cryptocurrency craze does not only involve those who believe in the bright future of Bitcoin – there are also those, who see the very near end of the crypto market. Will government regulations destroy Bitcoin? Some of the Harvard professors share their opinion.
9 January, AtoZForex – While Bitcoin and other cryptocurrencies have had an amazing year in terms of growth, many fear that the market can crash unexpectedly. In fact, some even speculate that Bitcoin is a bubble. In the latest news, some of the Harvard economics professors have suggested their version of Bitcoin era end.
Will government regulations destroy Bitcoin?
Professor Kenneth S. Rogoff has stated that he believes that the risk of financial anonymity will appear as a key factor to destroy Bitcoin. He argued that the governments will eventually crush Bitcoin through regulations, which will emerge as a result of big financial risk. He has stated:
“Small anonymous transactions with virtual currencies…would be desirable but large-scale anonymous payments would make it extremely difficult to collect taxes or counter criminal activity.”
Following on this, Mr. Kenneth is not alone. His counterpart, Jeffrey A. Miron, a libertarian, believes that central governments will push the technology out of existence. He has added:
“It could let cryptocurrencies peacefully exist, and not accept them as a means of payment, and that’s what I think it should do. But my guess is that sooner or later governments are going to regulate cryptocurrencies out of existence.”
Global authorities tighten the regulations
The odds of the governmental crackdown on Bitcoin and other digital currency seems quite real. As a matter of fact, already myriad of global authorities have restricted access to trade of exchange Bitcoin. Just like this, the Chinese government has banned initial coin offerings (ICOs) and limited Bitcoin exchange access.
Another fresh example – the EU central bank initiative. The central European Bank, ECB, has made a major announcement in relation to the cryptocurrencies last week. The bank has called for EU nations to establish a regulation and taxation norms for Bitcoin. The ECB sees Bitcoin as an object of speculation and a tool for money laundering.
ECB Yves Mersch has warned the public about the possibility of a threat to economic stability that Bitcoin can pose. According to the ECB official, the digital currency is capable of weighing on the stability of EU economy in case financial infrastructure institutions get involved with the cryptocurrency.
Think we missed something? Let us know in the comments section below.