US financier Steve Hanke says the BTC fundamental value is 0.
Famous US financier Steve Hanke believes Bitcoin is a highly speculative asset and its underlying value is zero, but is it? Find out more in our upcoming BTC news.
Well-known American financier Steve Hanke has revealed his negative stance towards BTC, arguing that the main cryptocurrency is volatile and has no real, fundamental value. Hanke is also a professor of applied economics at John Hopkins University and used Twitter to warn investors to stay away from BTC. The professor does not consider the leading digital asset to be a real currency and even calls it “snake oil”. he continued:
“Extreme volatility, susceptibility to fraud and uncertainty are reasons why BTC will never be suitable as a real currency.”
While Bitcoin’s price volatility is current, it remains a new asset that could weather its volatility for the next several years, especially with actual law enforcement. SkyBridge CEO Anthony Scramucci compared Bitcoin to Amazon, recalling that the e-commerce giant was unstable in the beginning but is now one of the largest in the world. :
“Bitcoin is very volatile because it is in the early stages of adoption. Amazon had the same volatility curve 24 years ago. But if you had invested $ 10,000 in Amazon when you went public, you’d have $ 21 million today. “
Hanke doesn’t stop there as he concludes that BTC is highly speculative and has a fundamental value of zero. His words are valuable because, like other investments, BTC is an investment vehicle. Mechanics and several other dealers and investors have used it to make it a profit. However, there are others who prefer to keep it because they consider it a safe store of value. Prominent names here are investor Paul Tudor Jones and Stan Druckermiller. Larger companies like Microstrategy and Tesla are also buying large amounts of the asset, so even though Hanke claims that BTC has an underlying value of zero, the asset has reached a major milestone.
Hanke had previously objected to El Salvador’s move, saying Bitcoin’s fraud potential was extremely important in this case. The point of contention is that its blockchain is completely transparent and all transactions are recorded on the ledger. Hence, the nature of cryptocurrency makes it an unsuitable tool for those looking to hide something.
DC Forecasts is a leader in many crypto news categories, always striving for the highest journalistic standards and adhering to strict editorial guidelines. If you would like to share your expertise or contribute to our news page, please contact us at [email protected]