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Governments could regulate Bitcoin out of existence, says Economics professor

Economics professor at Havard Kenneth S. Rogoff, who is also a crypto expert, says governments could regulate Bitcoin out of existence.

While there would be nothing to be concerned about with cryptocurrency micro payments, governments would be worried about large-scale anonymous payments & want to identify involved users. He says, for instance, these kind of payments would make it difficult to collect taxes or counter criminal activity.

“Small anonymous transactions with virtual currencies…would be desirable,” Rogoff said, but “large-scale anonymous payments would make it extremely difficult to collect taxes or counter criminal activity.”

He noted that Bitcoin price is depends on its “near-anonymity” of deals. And saying that anonymity has permitted various criminals or illegal activity through various Bitcoin markets. According to him, it has permitted drug dealings, unlicensed gun sales and donations to hate groups.

He says competitors of Bitcoin like Ethereum, Ripple, &  Monero will fall in value even if Bitcoin is not regulated out of existence. He also says central banks will create their own digital currencies.

Also Read: Officially Ripple crosses $52 bln and overtakes Bitcoin Cash 

One would wonder why the huge aggression against Bitcoin is happening now & yet the cryptocurrency has been around for nearly eighteen years now. Economics professor Jeffrey A. Miron, a libertarian economist says there is no reason for governments’ concern over payments they do not regulate.

“We’ve seen the transformation of all sorts of industries from being on paper or in some physical unit to being all electronic, and nothing bad has happened. Indeed, a lot of good stuff has happened” he says.

 

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David

David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.

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