Bitcoin Price ‘More Likely To Hit $100’ Without Illicit Uses, Says Harvard Economist

A Harvard economist told CNBC Tuesday, March 6 that Bitcoin is “more likely to be worth $100 than $100,000” by 2028.

Speaking to reporters during an edition of the network’s Squawk Box segment, professor and economist Kenneth Rogoff implied Bitcoin only had value because of its use in “money laundering and tax evasion.”

“I would see $100 as being a lot more likely than $100,000 ten years from now,” he said, continuing:

“Basically, if you take away the possibility of money laundering and tax evasion, [Bitcoin’s] actual uses as a transaction vehicle are very small.”

Rogoff joins a diminishing number of traditional finance figures still maintaining a firm anti-Bitcoin stance. Despite high-profile naysayers such as JPMorgan CEO Jamie Dimon U-turning on their negative opinions in recent months, others remain highly skeptical.

Last month, Berkshire Hathaway vice president Charlie Munger adopted a particularly harsh tone, telling the audience during an AGM speech that Bitcoin was “totally asinine” and that people investing in it “disgusted” him.

Despite mixed perspectives on price performance, the implication of Bitcoin in organized crime has come under more serious doubt this year. Despite Europol this month suggesting as much as $5.5 bln per year is laundered via cryptocurrency, Bitcoin in particular has lost favor with perpetrators, who allegedly prefer other more anonymous assets such as Monero.

Rogoff meanwhile appears alone in suggesting regulation will force the price of Bitcoin down, not up, while many industry commentators welcome regulatory moves as a step towards mainstream acceptance and adoption.

The European Commission, the EU’s executive arm, is set to reveal plans for a joint regulatory effort on fintech, including Blockchain, Reuters reported Monday, March 5.

A copy of a draft document seen by the publication, due for release “as soon as this week,” suggests a desire for EU regulators to adopt blanket rules governing issues such as crowdfunding and “[b]lockchain technology standards.”

This, Reuters suggests, forms part of a move to end the “patchwork” system of regulations currently in force across member states of the bloc.

“An EU framework would offer a European passport, and, at the same time, ensure the proper management of platforms and the protection of fund providers,” the draft reportedly states.

Unlike cryptocurrency, Blockchain treatment has become a central focus for the European Commission, which early last month unveiled

 its dedicated EU Blockchain Observatory and Forum.

Billed as “one of the world’s most comprehensive repositories of blockchain experience and expertise,” the entity should function as a melting pot for various bodies to “discuss and develop new ideas and directions” involving Blockchain technology.

Meanwhile on the topic of cryptocurrency, the EU’s financial services chief Valdis Dombrovskis said during a Commission speech Feb. 26 that lawmakers “stand ready” to introduce regulation if necessary.

At the same time, the EU “must embrace the innovation” of Blockchain, he concluded.

Source: William Suberg