Economist Compares Bitcoin To Major Disasters

The first cryptocurrency is a speculative asset with zero fundamental value, says Steve Hanke.

Professor of Applied Economics, Johns Hopkins University and a critic cryptocurrency Steve Hanke posted on Twitter image that Bitcoin is put on a par with major disasters such as the wreck of “Titanic” in 1912 and the airship “Hindenburg” in 1937.

Hanke also called the first cryptocurrency a speculative asset with zero fundamental value.

Hanke worked as a senior economist during the administration of US President Ronald Reagan from 1981 to 1982.

#Bitcoin is an asset that is extremely volatile, susceptible to fraud, and highly uncertain. What could go wrong? Bitcoin is nothing more than a highly speculative asset with a fundamental value of ZERO. pic.twitter.com/RxwU3MbW1l

— Steve Hanke (@steve_hanke) September 27, 2021

“Bitcoin is an asset that is extremely volatile, fraudulent and highly unreliable,” the economist said.

Hanke already criticized cryptocurrency in June after Bitcoin became legal tender in El Salvador.

According to the economist, due to the adoption of the first cryptocurrency as a means of payment, the economy of El Salvador may “collapse”, since all American dollars will be withdrawn from the country by converting them into bitcoin.

On September 7, El Salvador entered into force a law granting the first cryptocurrency the status of legal tender on a par with the US dollar.

El Salvador just bought 200 new coins.

We now hold 400 #bitcoin#BitcoinDay 🇸🇻

— Nayib Bukele 🇸🇻 (@nayibbukele) September 6, 2021

On the same day, the country’s authorities bought 550 bitcoin. Later, the President of El Salvador Nayib Bukele announced an additional purchase of 150 bitcoin.

We just bought the dip.

150 new coins!

El Salvador now holds 700 coins.#Bitcoin🇸🇻

— Nayib Bukele 🇸🇻 (@nayibbukele) September 20, 2021

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