With the recent, dramatic rise in the value of Bitcoin (BTC), many people are excited and enthusiastic about the future of the cryptocurrency. The price of a single bitcoin has gone from next to nothing just a handful of years ago to over $10,000. Supporters placing big bets on the virtual currency are predicting stratospheric growth. It seems that the bandwagon is growing every day as people rush to get their hands on Bitcoin.
However, on the other side of the fence are a growing army of skeptics who believe that Bitcoin prices are in a bubble and a downturn is eminent. One of the most recent, high profile opponents is Joseph Stiglitz, a professor of economics at Columbia University and former chair of the U.S. President’s Council of Economic Advisers.
…Bitcoin is successful only because of it’s potential for circumvention…lack of oversight. So it seems to me it ought to be outlawed. It doesn’t serve any sort of social, useful function. – Joseph Stiglitz
Stiglitz went on the record in a Bloomberg interview saying that Bitcoin will collapse and that it should be outlawed. He argues that the price of Bitcoin is unsustainable and that the cryptocurrency only has value because of it’s potential for circumvention. Stiglitz went on to say that he believes that digital currency should exist, but should be created and controlled by the government.
With any type of innovation, especially a market that is growing as rapidly as Bitcoin is sure to be met with opposition from detractors. It is certainly possible and even likely that government regulation will affect cryptocurrencies in the United States. However, the potential for a change in the market does not necessarily mean that Bitcoin will go away or even decline. It will be interesting to continue to watch the conversation as the public awareness of cryptocurrencies continues to grow.
Editor’s note: All of the “um” “uh” and other unnecessary words have been removed from the transcript. There were a lot of them.