Kenneth Rogoff, the former chief economist at the International Monetary Fund and acting professor of economics at Harvard University, believes that cryptocurrency has no difference from lottery tickets.

Cryptocurrencies for weak economies

According to Rogoff, only countries with a weak economy may be interested in using cryptocurrencies at the national level. This list includes Cuba, Iran, Libya, North Korea, Somalia, Syria, and Russia.

"The right way to think about cryptocurrency coins is as lottery tickets that pay off in a dystopian future where they are used in rogue and failed states, or perhaps in countries where citizens have already lost all semblance of privacy. It is no coincidence that dysfunctional Venezuela is the first issuer of a state-backed cryptocurrency (the “petro”)."

Rogoff also noted that it is rather difficult to predict the future fate of this class of assets.

Rogoff mentioned that bitcoin is too unstable to be called digital gold, because unlike real gold, bitcoin has no alternative use. The economist also recalled the high level of energy consumption necessary to maintain operations in the bitcoin system. According to Rogoff, in this regard, maintaining bitcoin is less efficient than maintaining any centralized banking system.

"And even if bitcoiners manage to find a way to lower the phenomenal energy cost of verifying transactions, the very nature of decentralised ledger systems makes them vastly less efficient than systems with a trusted central party like a central bank."

The professor predicts even greater tightening of cryptoregulation in countries with developed economies. Large economies will not tolerate cryptocurrency in their current form because of their ability to be used in money laundering. And if cryptocurrencies abandon anonymity or pseudonymity in order to satisfy regulators, they will lose their attractiveness.

"In the end, advanced economies will surely coordinate on cryptocurrency regulation, as they have on other measures to prevent money laundering and tax evasion."

Rogoff concluded that the future of cryptocurrency mainly depends on the actions of the governments of countries with developed economies.

Up to $100

The long-term forecast of bitcoin value, according to Rogoff, is close to $100. However, he does not exclude that the price can go up to $100,000 due to a variety of reasons.

"But as I also pointed out back then, just because the long-term value of bitcoin is more likely to be $100 than $100,000 does not necessarily mean that it definitely should be worth zero."

An economist from Harvard and previously predicted that Bitcoin could drop to $ 100.