Harvard Economist claims that bitcoin prices are falling

In the next ten years, bitcoin is more likely to be $ 100 than $ 100,000, says the Harvard economist

Harvard University professor and economist Kenneth Rogoff said on Tuesday that the possibility of bitcoin prices falling to $ 100 is higher than that of the digital currency, which is trading at $ 100,000 a decade later.

“I think bitcoin will cost a fraction of what it is now if we leave ten years from here … I would see $ 100 as much more likely than $ 100,000 in ten years,” Rogoff told CNBC. Squawk Box. “

“If it takes away the possibility of money laundering and tax evasion, its actual use as a means of transaction is minimal,” said the former chief economist of the International Monetary Fund (IMF).

Many illegal transactions are related to bitcoin, estimates of which vary in proportion to the use of digital currency used in illegal activities. According to Shone Anstey, co-founder and president of Blockchain Intelligence Group, he estimated that the level of illegal transactions fell to 20 percent in 2016 and was “significantly less than that” in 2017.

The regulations introduced by the government will provoke a drop in bitcoin prices, Rogoff said, although he stressed that it would take time to develop a global regulatory framework.

“This must be global regulation. “Even if the United States defeats itself and China is repressed, but Japan does not, people will still be able to launder money through Japan,” he said.

According to industry site CoinDesk, bitcoin traded around $ 11,242.61 during morning trading in Asia. The price of the digital currency fell this year from a record high of $ 19,000 last December.

According to Rogoff, the authorities are passive about regulating bitcoin, which is due to the expectation of technology behind the digital currency.

“They want to see advances in technology,” Rogoff said, adding that the private sector has historically “designed everything” in the history of currency, from standardized coinage to paper currency.

Bitcoin is a significant area of ​​growth as an application of blockchain technology that allows transactions to be maintained and recorded.

However, there have also been allegations in the past about falling bitcoin prices. Before Bitcoin was sold last December, Rogoff said last October that digital currency estimates would “collapse” amid governments’ attempts to regulate space.