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Steve Hanke, a professor of applied economics at Johns Hopkins University, has criticized bitcoin, saying it is not a currency. The economist, known for his vocal opinions on crypto and for promoting dollarization initiatives in Latam, blasted bitcoin, saying it has a “fundamental value of zero” and that it is a “highly speculative asset.”
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 crypto can have on world economies, disputed bitcoin’s utility, states:
Bitcoin is not a currency. It is just a highly speculative asset with a fundamental value of zero.
Hanke illustrated his point with a cartoon drawn by Robert Rich, as part of his work for Hedgeye Risk Management, comparing other major fiat currencies, including the dollar, yen and euro, to bitcoin.
Responses from the bitcoin community to Hanke’s opinions came quickly. Digital artist Lucho Poletti, known for his bitcoin-focused work, tweeted a similar cartoon that depicted bitcoin as a better form of money than the fiat currencies that appeared in Robert Rich’s cartoon.
Others criticized Hanke’s opinion in writing, such as Dr. Julian Hosp, CEO of decentralized finance app Cake Defi, who countered Hanke’s view, declares:
Bitcoin has utility. We can debate how much, but it’s definitely >0. There are undoubtedly some people who will benefit. Finally, it is demonstrably rare. Therefore, your claim that bitcoin has zero value is 100% wrong.
Hanke, a proponent of currency boards and dollarization as a solution to inflation and devaluation problems in countries such as Argentina, has criticized the adoption and function of bitcoin several times.
In June 2021, Hanke blasted the use of bitcoin in El Salvador as legal tender, saying it could cause the collapse of the country’s economy. At the time, he stated that all the dollars in El Salvador could be “vacuumed out” of the country, leaving the citizens with only bitcoin.
This criticism intensified in October 2021, when he stated that Nayib Bukele, the president of El Salvador, “played fast and [loose] with El Salvador tax dollars left,” when he announced to buy bitcoin dip while buying 150 bitcoin.
What do you think of Steve Hanke and his criticism of bitcoin adoption and its fundamental value? Tell us in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons
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