{"id":19217,"date":"2023-03-28T11:02:11","date_gmt":"2023-03-28T11:02:11","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/it-is-not-a-currency-and-has-a-fundamental-value-of-zero-bitcoin-news\/"},"modified":"2023-03-28T11:02:11","modified_gmt":"2023-03-28T11:02:11","slug":"it-is-not-a-currency-and-has-a-fundamental-value-of-zero-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/it-is-not-a-currency-and-has-a-fundamental-value-of-zero-bitcoin-news\/","title":{"rendered":"It Is ‘Not a Currency’ and Has a ‘Fundamental Value of Zero’ \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Steve Hanke, professor of applied economics at Johns Hopkins University, has criticized bitcoin, stating it is not a currency. The economist, known for his vocal opinions about crypto and for the promotion of dollarization initiatives in Latam, blasted bitcoin, saying it has a \u201cfundamental value of zero,\u201d and that it is a \u201chighly speculative asset.\u201d<\/strong><\/p>\n

Steve Hanke Criticizes Bitcoin\u2019s Function and Value<\/h2>\n

Steve Hanke, professor of applied economics at Johns Hopkins, has criticized bitcoin and its value in one of his latest tweets. The economist, known to be very vocal about the negative effect that crypto can have on world economies, contested bitcoin\u2019s utility, stating<\/a>:<\/p>\n

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Bitcoin is not a currency. It\u2019s just a highly speculative asset with a fundamental value of zero.<\/p>\n<\/blockquote>\n

Hanke illustrated his opinion with a cartoon drawn by Robert Rich, as part of his work for Hedgeye<\/a> Risk Management, where he compares other main fiat currencies including the dollar, the yen, and the euro, with bitcoin.<\/p>\n

Bitcoin Community Responds<\/h2>\n

Responses from the bitcoin community to Hanke\u2019s opinions came quickly. Digital artist Lucho Poletti, known for his bitcoin-focused work, tweeted<\/a> a similar cartoon that depicted bitcoin as a better form of money than the fiat currencies that appeared in Robert Rich\u2019s cartoon.<\/p>\n

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Lucho Poletti\u2019s alternative cartoon. Source: @luchopoletti Twitter account.<\/figcaption><\/figure>\n

Others criticized Hanke\u2019s opinion in writing, like Dr. Julian Hosp, CEO of decentralized finance app Cake Defi, who countered Hanke\u2019s view, declaring<\/a>:<\/p>\n

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Bitcoin has utility. We can argue how much, but it is definitely >0. There are undoubtedly some people who want its utility. Lastly, it is provably rare. Hence, your statement that bitcoin has zero value is 100% incorrect.<\/p>\n<\/blockquote>\n

Hanke, as a promoter of currency boards and dollarization<\/a> as a solution for inflation and devaluation problems in countries like Argentina, has criticized the adoption and function of bitcoin several times.<\/p>\n

In June 2021, Hanke blasted the adoption of bitcoin in El Salvador as legal tender, saying it could cause the collapse<\/a> of the country\u2019s economy. At the time, he stated that all the dollars in El Salvador could be \u201cvacuumed out\u201d of the country, leaving citizens with only bitcoin.<\/p>\n

This criticism intensified<\/a> in October 2021, when he stated that Nayib Bukele, the president of El Salvador, was \u201cplaying fast and [loose] with El Salvador\u2019s tax dollars again,\u201d when he announced buying the bitcoin dip while purchasing 150 bitcoin.<\/p>\n

What do you think about Steve Hanke and his criticism of bitcoin adoption and its fundamental value? Tell us in the comments section below.<\/strong><\/em><\/p>\n

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\nSergio Goschenko <\/h6>\n

\nSergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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