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Crypto Should be “Shut Down,” Nobel Prize Economist Says

Nobel Prize Economist, Joseph Stiglitz, does not believe crypto is a positive thing for society; in fact, he called for efforts to “shut them down”.

In an interview with CNBC, Stiglitz advocated the need to implement a digital money system. For him, the advantages of using electronic payments make these technologies a safer, more transparent and efficient way to carry out transactions when compared with traditional cash.

“I’ve been a great advocate of moving to an electronic payments mechanism. There are a lot of efficiencies. I think we can actually have a better regulated economy if we had all the data in real time, knowing what people are spending,”

However, he was emphatic in pointing out that while he
advocates electronic payments, cryptocurrencies are not the best
implementation:

“We have a very good currency so far; the currency’s been run in a very stable way, there’s no need for anyone go to a cryptocurrency

…I actually think we should shut down the cryptocurrencies.”

For the economist, the lack of control and regulation is extremely dangerous for the economic development of our society. Stiglitz explains that because there were not enough means to trace the funds, the use of cryptocurrencies made it very easy to engage in illicit activities such as money laundering, tax evasion, etc.

Crypto = Dark Platform

Joseph Stiglitz said he was concerned that people were “moving things off of a transparent platform and into a dark platform.” He commented that according to his research, an increasing percentage of the global wealth was being stored in these dark havens.

As reported by our partner site Crypto Crimson, Stiglitz’s findings are congruent with the results of a survey conducted by deVere on more than 700 high-net-worth individuals. It concluded that about 70% of people with more than 1.3M USD in investments own some crypto or are interested in investing in cryptocurrencies and blockchain technologies.

However, those who support the use and adoption of
cryptocurrencies defend this technology from Stiglitz’s arguments.

First, many argue that due to its decentralized nature, it
is impossible for a government or central entity to “shut down” crypto.

Similarly, neither the blockchain nor cryptos are a “dark haven”. In fact, the blockchain is much more transparent and auditable than traditional banking operations. Everyone can see the movements that happen on the blockchain, now, dark markets and other similarly ilicit platforms exist and take advantage of these technologies but undoubtedly criminals move more resources through fiat money than through cryptocurrencies.

And this is a fact proved by the European Union Agency for Law Enforcemente Cooperation (EUROPOL)

The post Crypto Should be “Shut Down,” Nobel Prize Economist Says appeared first on Ethereum World News.

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Bitcoin Down 6%, Market Loses $22 Billion in a Day

Bitcoin (BTC), Cryptocurrency–Despite the significant gains Bitcoin and the crypto-markets posted over the weekend, nearly reaching 7000 USD for the first time since last month, 22 billion USD has been wiped from the market capitalization in less than 24 hours.

The rout began with a steady erosion of price throughout most of Monday, before taking a precipitous fall in the early trading hours of Tuesday. Cryptocurrency investors on the East Coast awoke to Bitcoin being down 6 points, with every coin in the top ten approaching or eclipsing double-digit losses (EOS fell the hardest with a 14% price drop as of writing).

While most investors were cautiously watching the market throughout the weekend’s price gains, Monday brought about a number of reports to suggest that the turnaround would be short-lived. Given the relative low trade volume and lack of momentum in the upward price movement, several analysts predicted that the currency would find trouble eclipsing the 7000 USD mark, and that a slide back to 6000 USD levels could be inevitable. Investors responded with a timid day of trading on Monday, seeing almost all currencies fall into a slow erosion of the weekend’s price gains. Early Tuesday morning brought about the precipitous drops that led to the present state of the crypto market, with nearly 23 billion USD taken from the market cap in a number of hours.

CoinTelegraph reports the price fall came in response to several prominent economists voicing their displeasure with cryptocurrency on Monday, going so far as to predict the digital form of money would inevitably fail.  Speaking in an interview with Financial News London, Joseph Stiglitz, Nouriel Roubini and Kenneth Rogoff cite the increased pressure of government regulation as precipitating the downfall of cryptocurrency, stating that no government could continue to allow the “nefarious” activity prompted by the growing industry. In particular, Stiglitz, who holds a Nobel Prize in Economics, posits that the anonymity afforded through Bitcoin (and other cryptos) goes against the virtues of a transparent banking system (the interviewer failed to question the economists on whether HSBC’s billion dollar money laundering of drug cartels qualified as either nefarious or transparent). In addition, the economists conclude that Bitcoin fails to meet the criteria of money, having no intrinsic store of value and too high of a price volatility to be used as a means of exchange.

Other outlets point to the recent hack of decentralized cryptocurrency exchange Bancor as bringing about the lack of confidence in the market (ironically, the funds were stolen just days after Vitalik Buterin called for more decentralized crypto exchanges while slamming the centralized variety).

Tezos (XTZ), which experienced a wild, roller coaster ride of price swings throughout its first week of open market trading, was the only coin in the top 50 to post a percentage gain on the day. However, that came after the currency slid 15 points on Monday, before making a small recovery to 2.18 USD. XTZ is still trading well below the price of pre-exchange listing, when the coin was being speculated with IOUs at a per-coin value of 4 USD. Despite the rest of the market falling, Tezos price volatility is indicative of the market, and investors, attempting to establish a determined value for the project. The currency was originally hailed as one of the most promising projects to come out of crypto in 2017, holding a record-breaking ICO funding of 232 million USD. The subsequent year brought a number of delays to investors being issued their tokens, with several ongoing lawsuits and anecdotes of in-fighting among the team at Tezos causing the investment base to lose confidence in the project.

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