Economic Historian Niall Ferguson Backtracks on Bitcoin Beliefs, Says He Was Wrong About Cryptos
The recognized economic historian Niall Ferguson recognized that he was “very wrong” about Bitcoin (BTC).
At The Australian Financial Review Business Summit, he mentioned that he was wrong about what he thought about Bitcoin and blockchain technology.
Niall Ferguson Regrets Calling Bitcoin a “Complete Delusion”
Ferguson heard about cryptocurrencies when his son told him about the most popular digital asset in the market in 2014. At that time, he believed that Bitcoin was a “complete delusion.” In order to claim that, he based his idea on the history of money. Nevertheless, he now changed opinion.
Since 2014, Bitcoin was able to grow and reach $20,000 in December 2017. After this, Bitcoin and the whole cryptocurrency market entered a bear trend. However, Ferguson seems not to be worried about Bitcoin falling under $3,000 since for him it still remains far from zero.
The historian has also decided to join a new project that aims at implementing Friedrich Hayek’s idea that is expressed in the Denationalization of Money. As per TrustNodes, Hayek explained that money should maintain its purchasing power over long and short periods of time.
Nevertheless, this task seems difficult if there is a centralized authority controlling the money supply. Governments tend to manipulate the money supply in order to achieve political goals.
Now, Ferguson is advising a company called Ampleforth that is trying to implement this idea by working on a complex system based on blockchain technology.
Hayek explained that it would be difficult for the older generation of bankers to understand how this new system would work. That means that they might clearly reject it.
Bitcoin is a decentralized, permissionless and uncensorable virtual currency that allows interested parties to store funds or send and receive transactions. The digital asset has been in the market for more than ten years and it has proven to be a resilient currency amid difficult times.
At the time of writing, each Bitcoin can be purchased for $3,900 and it has a market capitalization of $68.64 billion.