A Harvard economist claims that bitcoin prices are falling

A Harvard economist says that in the next ten years, bitcoin is more likely to be $ 100 than $ 100,000.

Harvard University economist Kenneth Rogoff said on Tuesday that the $ 100 drop in bitcoin prices was higher than the $ 100,000 digital currency trade a decade later.

“I think bitcoin is worth a little bit of value now if we go out in ten years … I’m likely to have $ 100 more than $ 100,000 in ten years,” Rogoff told CNBC. Squawk Box »:

“If you are depriving money laundering and tax evasion, its actual use as a bargaining chip is minimal,” said the former chief economist of the International Monetary Fund (IMF).

There are many illegal transactions related to Bitcoin, the ratings of which differ in the proportion of the use of digital currency used in illegal activities. According to Sean Enstay, co-founder of Blockchain Intelligence Group, he estimated that the level of illegal transactions fell to 20% in 2016 and “significantly less than that” in 2017.

The regulations introduced by the government will provoke a fall in bitcoin prices, Rogoff said, adding that it will take time to develop a global framework for regulation.

“It must be a global settlement. “Even if the United States puts pressure on it and China puts pressure on it, but Japan does not, people will still be able to launder money through Japan,” he said.

According to the industrial website CoinDesk, Bitcoin traded at about $ 11,242.61 during the Asian trading session on Tuesday morning. The price of digital currency this year fell from a record high of more than $ 19,000 in December last year.

According to Rogoff, the authorities have been passive in regulating bitcoin due to the expectation of technology underlying digital currency.

“They want to see the advancement of technology,” Rogoff said, adding that the private sector has historically “designed everything” in the history of currency, from standard coins to paper currencies.

Bitcoin is a significant area of ​​growth as an application of blockchain technology, which allows you to maintain and record transactions.

However, in the past there were also allegations of falling bitcoin prices. Ahead of the bitcoin sale in December last year, Rogoff said in October last year that digital currency ratings would “collapse” amid government attempts to regulate the area.