Are your clients still asking about bitcoin? You might let them know that three of the world’s most respected economists agree that it’s pretty much junk.
Predicting that global regulators will come down hard on the digital currency, Joseph Stiglitz, Nouriel Roubini and Kenneth Rogoff are jointly warning that bitcoin’s value may drop precipitously, according to Financial News.
“Bitcoin could easily be worth just $100 in 10 years,” the publication quotes Rogoff as saying. “People in power will move to regulate anonymous transactions. That you can be sure of.”
Stiglitz said that global authorities won’t continue to ignore bitcoin as its market grows: “Once it becomes significant they will use the hammer.”
Bitcoin has already plunged from a near- $20,000 high seven months ago to less that $6,000 at the end of June.
“For bitcoin to be a currency it has to be a unit of account, a means of payment, and a stable store of value,” said Roubini. “It is none of these. Bitcoin is not even accepted at bitcoin conferences, and how can something that falls 20% one day and then rises 20% the next be a stable store of value?”