Steve Hanke Blasts Bitcoin: It Is ‘Not a Currency’ and Has a ‘Fundamental Value of Zero’

Steve Hanke, prof of applied economics astatine Johns Hopkins University, has criticized bitcoin, stating it is not a currency. The economist, known for his vocal opinions astir crypto and for the promotion of dollarization initiatives successful Latam, blasted bitcoin, saying it has a “fundamental worth of zero,” and that it is simply a “highly speculative asset.”

Steve Hanke Criticizes Bitcoin’s Function and Value

Steve Hanke, prof of applied economics astatine Johns Hopkins, has criticized bitcoin and its worth successful 1 of his latest tweets. The economist, known to beryllium precise vocal astir the antagonistic effect that crypto tin person connected satellite economies, contested bitcoin’s utility, stating:

Bitcoin is not a currency. It’s conscionable a highly speculative plus with a cardinal worth of zero.

Hanke illustrated his sentiment with a cartoon drawn by Robert Rich, arsenic portion of his enactment for Hedgeye Risk Management, wherever helium compares different main fiat currencies including the dollar, the yen, and the euro, with bitcoin.

Bitcoin Community Responds

Responses from the bitcoin assemblage to Hanke’s opinions came quickly. Digital creator Lucho Poletti, known for his bitcoin-focused work, tweeted a akin cartoon that depicted bitcoin arsenic a amended signifier of wealth than the fiat currencies that appeared successful Robert Rich’s cartoon.

Lucho Poletti’s alternate cartoon. Source: @luchopoletti Twitter account.

Others criticized Hanke’s sentiment successful writing, similar Dr. Julian Hosp, CEO of decentralized concern app Cake Defi, who countered Hanke’s view, declaring:

Bitcoin has utility. We tin reason however much, but it is decidedly >0. There are undoubtedly immoderate radical who privation its utility. Lastly, it is provably rare. Hence, your connection that bitcoin has zero worth is 100% incorrect.

Hanke, arsenic a promoter of currency boards and dollarization arsenic a solution for ostentation and devaluation problems successful countries similar Argentina, has criticized the adoption and relation of bitcoin respective times.

In June 2021, Hanke blasted the adoption of bitcoin successful El Salvador arsenic ineligible tender, saying it could origin the collapse of the country’s economy. At the time, helium stated that each the dollars successful El Salvador could beryllium “vacuumed out” of the country, leaving citizens with lone bitcoin.

This disapproval intensified successful October 2021, erstwhile helium stated that Nayib Bukele, the president of El Salvador, was “playing accelerated and [loose] with El Salvador’s taxation dollars again,” erstwhile helium announced buying the bitcoin dip portion purchasing 150 bitcoin.

What bash you deliberation astir Steve Hanke and his disapproval of bitcoin adoption and its cardinal value? Tell america successful the comments conception below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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