Harvard economist Kenneth Rogoff has predicted doom for Bitcoin, saying that the cryptocurrency is more likely to fall to $100 than shoot to the moon.
Professor Kenneth Rogoff is a well-known ivy league educated economist in Wall Street and several elitist circles all over the globe. He is well versed in economic dynamics and pretty well understands how they work. His word is sacrosanct in many government and financial communities. So, it's no surprise he has a strong opinion about Bitcoin and cryptocurrencies.
Prof. Rogoff is not a fan of cryptocurrencies. His feelings about Bitcoin and other digital currencies is well documented. In October 2017, he said Bitcoin is a bubble that will eventually collapse. This opinion hasn't changed despite Bitcoin's rise to $20,000 in December. Prof. Rogoff is now restating his former opinion, only that he predicted a crash price for Bitcoin this time around.
"I think bitcoin will be worth a tiny fraction of what it is now if we're headed out 10 years from now ... I would see $100 as being a lot more likely than $100,000 ten years from now," he proclaimed on CNBC's Squawk Box.
He added that Bitcoin has little to no potential. "Basically, if you take away the possibility of money laundering and tax evasion, its actual uses as a transaction vehicle are very small", he said.
The main reason Bitcoin will crash, according to him, is government oversight, regulation, and control. He believes governments at the moment are just waiting for the technology to mature. At the right time, when Bitcoin finally matures, governments will swoop down on it with heavy regulations which will make it lose value, he said.
"It really needs to be global regulation. Even if the U.S. cracks down on it and China cracks down, but Japan doesn't, people will be able to still launder money through Japan," he said, pointing out that not all governments will crack down on Bitcoin.
He added that the process would be gradual but noted that Bitcoin will not go to zero. He believes it would still be valuable to some "rogue nations" who would embrace it.