Famous economist, professor and cryptoskeptic Steve Hanke expressed his attitude toward Bitcoin as a means of payment in another tweet.
Many people believe #Bitcoin is the “currency of the future.” However, Bitcoin’s excessive volatility is a constant reminder that it can never be a reliable unit of account, & thus can NEVER be considered a currency. #BTC is just a highly speculative asset.pic.twitter.com/xV3kHM5IjK— Steve Hanke (@steve_hanke) July 20, 2021
He said that, while many people see Bitcoin as “the currency of the future,” its excessive volatility should constantly remind them that it will never be a reliable unit of account.
Hanke reinforced these thoughts by saying that the excessive volatility of the first cryptocurrency is the reason why the first cryptocurrency will never be considered a currency.
Among other reasons for this, the professor previously recalled the high transaction fees that users are charged when converting Bitcoin into U.S. dollars and vice versa.
That is why, according to Hanke, cryptocurrencies will never be fully used in everyday transactions.
Criticism through satire
Summarizing the above, Hanke concluded that Bitcoin is merely “a highly speculative asset.” The professor has repeatedly expressed his belief that cryptocurrencies cannot be turned into a real means of payment to be used quickly and cheaply.
Interestingly, he backed up his tweet with an amusing satirical cartoon in which Godzilla and King Kong are distracted by the sound of something falling heavily in the city. At the moment of the collision, Godzilla says, “Look! Bitcoin!”
The gold factor
As a reminder, these are not the economist’s first public statements. Hanke has previously stated that cryptocurrency could be a real currency if it were pegged to gold. He has also repeatedly criticized governments considering adopting Bitcoin.
For example, regarding the adoption of Bitcoin as official tender in El Salvador, the skeptic opined that the move would “drain the economy.”
He reasoned that Bitcoin holders from other countries intending to cash in on the digital currency would target the South American country and deprive it of dollars.