Steve Hanke, a professor of applied economics at Johns Hopkins University, has criticized bitcoin as not a currency. The economist, known for his vocal opinions on crypto and his promotion of the dollarization initiative in Latam, condemned bitcoin, saying it has “zero fundamental value” and is a “highly speculative asset.”
Steve Hanke criticizes Bitcoin’s function and value
Steve Hanke, a professor of applied economics at Johns Hopkins, criticized Bitcoin and its value in one of his latest tweets. The economist, who is known for being very aggressive about the negative impact of crypto on the global economy, challenged the usefulness of bitcoin,stating:
Bitcoin is not a currency. It is merely a highly speculative asset with zero fundamental value.
Hanke explained his views in a cartoon drawn by Robert Rich as part of his work forHedgeyeRisk Management compares bitcoin to other major fiat currencies such as the dollar, yen, and euro.
The Bitcoin Community’s Response
The response from the bitcoin community to Hanke’s opinion was swift. Digital artist Lucio Poletti, known for his bitcoin-focused work,tweeted a similar cartoondepicting bitcoin as a superior form of money to the fiat currency in Robert Rich’s cartoon.
Others, like Dr. Julian Hosp, CEO of the decentralized financial app Cake Defi, criticize Hanke’s views in writing,declaring:
Bitcoin has utility. How much can be debated, but it is definitely>: 0. There is no doubt that there are those who seek its utility. Finally, it is provably scarce. Therefore, your statement that bitcoin has zero value is 100% incorrect.
Hanke, as a proponent of currency boards anddollarizationas a solution to inflation and devaluation problems in countries like Argentina, has criticized the adoption and function of bitcoin several times.
In June 2021, Hanke accused El Salvador of adopting bitcoin as legal tender, which could lead to the collapse of the country’s economy. At that time, he stated that all of El Salvador’s dollars could be “vacuumed up,” leaving citizens with only bitcoin.
This criticism intensified in October 2021, when El Salvador’s president, Naive Buquere, who announced that he would buy bitcoin dips while purchasing 150 bitcoins, said that he was “playing fast and loose with El Salvador’s taxes again.”
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