Steve Hanke, a professor of applied economics at Johns Hopkins University, criticized Bitcoin. According to him, it is not a currency. The economist is known for his fierce views on cryptocurrencies and his push for dollarization in Latin America. He criticized Bitcoin for having “zero fundamental value” and being a “highly speculative asset.”
Steve Hanke Criticizes Bitcoin’s Functionality and Value
in those tweet Recently, Applied Economics professor Steve Hanke said “bitter” about the king of cryptocurrencies and their value. He often speaks on the negative impact of digital currencies on the world economy and argues the utility of BTC.
“Bitcoin is not a currency. It’s just a highly speculative asset with a fundamental value of zero.”
Hanke illustrates his point with a cartoon drawn by Robert Rich while working at Hedgeye Risk Management. Here, he compares other major fiat currencies like the U.S. dollar, Japanese yen, and euro to BTC.
Feedback from the BTC community
The Bitcoin community was quick to respond to Hanke’s comments. Digital artist Lucho Poletti is known for his Bitcoin-centric work, tweet A similar cartoon appeared in Robert Rich’s comic, describing BTC as a better form of money than fiat.
Comics by Lucho Poletti | Source: Twitter
others have criticize As Dr. Julian Hosp, CEO of decentralized finance application Cake Defi, Hanke puts it this way:
“Bitcoin has utility. We can argue about how much utility there is, but it’s definitely > 0. There must be some people who want utility. Ultimately, it turns out to be rare. Hence your argument that Bitcoin has no value Not 100% accurate.”
As a currency council and a promoter of dollarization to address inflation and devaluation in countries like Argentina, Hanke has repeatedly criticized Bitcoin’s adoption and functionality. .
In June 2021, Hanke criticized El Salvador for using bitcoin as a legal currency, saying it could lead to the collapse of the country’s economy. At the time, he claimed that all of El Salvador’s dollars could be “emptied” from the country, leaving residents with only Bitcoin.
This criticism intensified in October 2021 when he announced that El Salvador’s President Nayib Bukele was “playing fast and liberalizing El Salvador’s taxation again” when he announced buying bitcoin on dips while buying 150 BTC.
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