Kenneth Rogoff from Harvard University thinks that once illicit activities are eliminated from the use of Bitcoin, it can fall to $ 100 in 10 years. He believes that once there is a proper regulatory framework, the value of Bitcoin will continue to fall.
True value only fraction of current value:
Currently, Bitcoin is trading at $ 11,000 level. However, he is of the opinion that majority of the people currently use Bitcoin for illicit activities as well as money laundering. Once tax evasion and money laundering with the help of Bitcoin is eliminated, the value of Bitcoin will fall significantly. He thinks that the true value of Bitcoin is only a fraction of the value at which it is currently trading at. This is the reason why in the coming 10 years, he believes that the value of Bitcoin will fall significantly.
Also, he does not believe that Bitcoin is paying any value to its holders. This is the reason why he thinks that over a period of time, the prices of Bitcoin will come down.
Also, he thinks that once there are proper regulations, it will be a trigger for the downfall in Bitcoin. After that, the Bitcoin will continue to fall. He, however, thinks that Bitcoin will not go to 0. Bitcoin will be trading around $ 100. Also, he thinks that many of the rogue nations will continue to use Bitcoin as well.
He strictly is against the notion that Bitcoin can increase to $ 50,000 or $ 100000 in the coming 10 years. He thinks that the probability of Bitcoin falling all the way down to $ 100 is much more as compared to it rising manifold from the current levels.
Also, he thinks that the cryptocurrency exchanges should be faced with the same rules and regulations as any other exchange trading platform. Only then, there will be proper scrutiny of the cryptocurrency exchanges. This scrutiny will enable the authorities to stop money laundering as well as tax evasion with the help of these cryptocurrency exchanges.
Clearly, he’s bearish on Bitcoin. It remains to be seen whether the other traders are also agreeing with his opinion or not. For now, however, many investors believe that the current up move which has started in Bitcoin will be continuing. It will make sure that Bitcoin crosses the older highs as well and reach completely new highs.
David is passionate about learning cryptography, tech and the Internet. He has years of experience working at international investment projects. Growing interested in Blockchain and cryptocurrencies in late 2015, he joined Smartereum as an editor.