Economist Joseph Stiglitz Believes That BTC Will Plummet To $100 In Value After Being “Regulated Into Oblivion”
Joseph Stiglitz used to be the chief economist with the World Bank and has won two Nobel Prizes for his work in Economic Sciences. Based on the current trends, he believes that the central banks that have yet to restrict bitcoin are holding back because of how small the market is. However, once the industry starts to thrive in a more massive direction, he told Financial News that these banks will “use the hammer.”
Joseph Stiglitz basically stated that the people who hold the most power in the industry will absolutely start to regulate anonymous transactions. He added,
“Bitcoin could easily be worth just $100 in 10 years.” The main concern with this type of currency is the fact that there’s the ability to maintain anonymity for users, though banking systems need transparently as well.”
To this, Stiglitz says,
“You cannot have a means of payment that is based on secrecy when you’re trying to create a transparent banking system. If you open up a hole like bitcoin then all the nefarious activity will go through that hole, and no government can allow that.”
Still, the industry needs to have some sort of regulations to help establish an even playing ground for big bank and institutional investors. These regulations are crucial to maintain enough flow to motivate the industry. However, there are plenty of losses that are making their way to the forefront of the industry, which means that companies that do not want to put out much risk are unsure of their next steps.
CipherTrace, a cybersecurity firm, has recently put out new information about these exchanges that could sway the industry. In 2017, the whole crypto economy experienced a loss of $266 million, which seemed to be largely due to theft. However, this year has already surpassed that several times over, adding up to $761 million, gone without a trace.
The UK seems to be the “model example” for how the crypto industry should be handled as a whole. Recently, they even established a committee that will help fraud, money laundering, and other criminal activities from getting into their crypto economy. Many people see this decision as a positive step for crypto, setting “the right tone for the future of crypto-assets in the UK,” according to Kevin Murcko, who is the CEO of CoinMetro.
Murcko also believes that there needs to be worldwide cooperation in helping governments to understand their role in this decentralized currency. He said:
“We heard today from the FCA, the Treasury, and the Bank of England – all experts on finance and crypto-assets. Around the world, we need subject specialists like these stepping forward to counsel governments on their approach to crypto-assets,”
The CEO of Play2Live, Alexey Burdyko, believes that the industry does not have trust, which is required to get ahead. He said,
“Once we begin to see more regulation enter the cryptocurrency market, we will begin to see a further rise in the market.”