Harvard University Professor of Economics and International Monetary Fund Former Chief Economist Kenneth S Rogoff, Bitcoin in 2018 $113,239.43 He explained that the estimation did not hold. Rogoff argued that about six years ago, Bitcoin’s value was 100,000 dollars in 10 years, it was more likely to reach $ 100,000. However, in 2024, the price of Bitcoin increased to $ 100,000 and went well beyond the estimation of Rogoff.
Explanations on wrong estimated
Following the latest developments, Rogoff said that the value of Bitcoin is far above the expectations. Bitcoin has increased to $ 113,000, unlike the estimation made in March 2018 under $ 10,000. This drew attention to the great rise of the crypto money market in recent years.
Rogoff attributed the wrong emergence of the estimation to the extreme optimistic approach that the United States would bring a more reasonable regulation on crypto currencies.
“I looked too optimistic that the US would make more reasonable arrangements on crypto currencies,” he said.
Following these evaluations, it was suggested that regulations were slower and more insufficient than expected.
Crypto coins and regulatory prints
Regulatory moves for crypto currencies did not meet the expectation of Rogoff said. Rogoff said in a statement on the social media platform X, which policy makers will inspect the use of crypto currencies in tax trafficking and illegal activities more strictly, but this foresight did not realize.
“I assume that policy makers would take more determined steps in tax evasion and illegal use of crypto currencies,” he said.
Rogoff stressed that this leads to strengthening of Bitcoin and other crypto currencies than expected.
It has been observed that crypto currencies have gained an important place in the global economy despite the regulation. Rogoff said Bitcoin could not foresee that Bitcoin competed with traditional currencies and that he would stand out as a transaction tool in the global informal economy of $ 20 trillion.
“This demand brings a base level to the price of Bitcoin, and I consider it in detail in my new book,” he said.
According to this statement, the intense demand in the underground economy came to the fore as an important element that supports the value of crypto currencies.
Regarding the conflicts of interest of the regulators were drawn attention
Rogoff finally criticized the attitude of regulatory institutions on crypto beings. In particular, he emphasized that some regulators working in official institutions can lead to a conflict of interests of high amounts of crypto assets.
“It is a clear conflict of interest that regulators have crypto money worth billions of dollars,” he said.
It was interpreted that this situation may affect the policies of regulatory institutions.
Rogoff’s statements on both its own past estimated and the current market structure revealed that crypto currencies continue to grow without a state regulation. Experts express different opinions about the long -term effects of crypto assets on global economy.
On the other hand, this output of Bitcoin increased the debate on the future of crypto currencies and its locations in the financial system. The next steps of regulatory institutions are closely monitored. It was observed that there were differences in the perspectives of crypto currencies compared to countries and institutions.
Rogoff’s statements have shown that there are different views on the developments in crypto currencies. The effects on the regulations and market dynamics that crypto currencies will face seem to continue to be discussed in the public opinion.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
