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Home / Business / Bitcoin [BTC] is prone to fraud and unreliable, claims John Hopkins economist Steve Hanke

Bitcoin [BTC] is prone to fraud and unreliable, claims John Hopkins economist Steve Hanke



From thinking about interest rates and money supply to hatreds and block sizes, elite economists often quarreled with Bitcoin [BTC] and the larger crypto-currency space. The traditional market analysts usually consider the decentralized currency to be a pipe dream.

An economist went one step further and called Bitcoin "unreliable" and "fraudulently vulnerable." Such was the opinion of Steve Hanke, the American economist at the prestigious John Hopkins University. The economist distinguished Bitcoin from the definition of a "currency" and described the asset that had recently passed the $ 100 billion mark as "highly speculative."

Bitcoin's price hike, especially in recent months, has been addressed by Hanke, warning readers not to be "fooled" as the 6 percent gain compared to the "big slump" is small. It can be assumed that Hanke alludes to the crypto winter, which broke the market from over $ 800 billion in January 201

8 to just over $ 100 billion in December of the same year.

Hankes Tweet read:

"# Bitcoin is up 6% on the year high of around $ 6,000. Do not be fooled, a plus of 6% is nothing after the big break-in. Bitcoin is unreliable and prone to fraud, it's not a currency, but nothing more than a highly speculative asset.

Bitcoin has seen several cycles of price movements since the beginning of the year, leading to a low for the coin of $ 3,400 in February 2019, but rose sharply by 71.88 percent to $ 5,844 in May, with steady gains in March and April were. On the other hand, stable assets such as gold have lost value, which has led many to opt for the digital equivalent of the real.

Although she is a vocal cryptocurrency skeptic and compares digital assets to the Dutch tulip frenzy of the 1700s, Hanke says, a cryptocurrency startup was carried out back in November 2018. AirTM, a cryptocurrency exchange, worked with Hanke to build up its price-stable assets for its Latin America division.

With the aim of addressing the economic situation in Venezuela, the economist has launched an initiative called "Airdrop Venezuela" to collect $ 1 million in crypto and later pass it on to locals calling on AirTM Digital Wallets. In this endeavor, Hanke adhered to the universal approach that cryptocurrencies provided as a means of communicating to the needy.

However, aside from his noble implementation of the cryptocurrency, Hanke's recent statement on Bitcoin has surprisingly been taken into account by the crypto advocates. Nic Carter of crypto-analytics company CoinMetrics said:

"It's surprising that you've completely dismissed Bitcoin, especially given its popularity and use in high-inflation countries. Nevertheless, I am a fan of your work. "

Crypto Bitlord, a popular cryptocurrency influence factor, which refers to a unique and recurring feature of Bitcoin based on the economics principle

" Not very smart for an economist!

The offer halved over four years for more than a few people each day. "

Civ Ekonom highlighted Bitcoin's price importance for its larger goal:

" The price may not be reliable, but Bitcoin is not the price. Bitcoin is the most reliable scrapbook in the world. Much more reliable than Fiat, for example.


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