Steve Hanke Blasts Bitcoin: Here’s The Breakdown

Steve Hanke has been a long-standing critic of Bitcoin, but he’s really stepped up his rhetoric recently. The economist has renewed his often passionate condemnation of the cryptocurrency, dubbing it a “fundamental value of zero”.

But what makes the professor say such harsh words about Bitcoin? Let’s take a look.

Bitcoin – Not a Real Currency

To Hanke, one of the biggest issues with Bitcoin is that it isn’t a real currency at all. He argues that it serves as no more than a transactional mechanism, and thus cannot be classed as a legit currency.

High Volatility

Hanke lambasted Bitcoin due to its incredibly high volatility. The esteemed economist points out the regular price fluctuations, which he states make it difficult to use Bitcoin in everyday transactions.

No Value

This brings us to the main crux of Hanke’s argument – Bitcoin has no fundamental value. He argues that, as it is neither a recognized currency nor a commodity, it has no reliable base value. This means it is incredibly risky to get involved in Bitcoin, as you have no idea how much it will be worth from one hour to the next.

So, Is Bitcoin Dead?

At the end of his keynote address on the matter, Hanke concluded that, in his opinion, Bitcoin has a fundamental value of zero and will ultimately fail.

Of course, here at Bitcoins.co.uk, we don’t agree with Hanke’s assertions and think that there is great potential in cryptocurrencies. We still recommend that people do their own research before investing in anything, so that they can make an informed decision about what to buy.

At any rate, it’s easy to see why Hanke has such negative views of Bitcoin. Let’s look at the key points:

  • Bitcoin is not a real currency

  • High volatility makes it difficult to use in everyday transactions

  • The lack of a fundamental value makes Bitcoin incredibly risky

What do you think? Is Bitcoin doomed to fail or will it ultimately come out on top? Let us know your thoughts in the comments!