Harvard Economist claims that Bitcoin prices are falling

A Harvard economist says bitcoin is likely to be worth more than $ 100,000 over the next decade.

Kenneth Rogoff, a professor and economist at Harvard University, said on Tuesday that the price of bitcoin is likely to fall to $ 100 more than the $ 100,000 digital currency trade a decade later.

Rogoff told CNBC: “I think if we set out ten years from now, it will be a small part of the current value of bitcoin … I would probably make $ 100 more than $ 100,000 ten years from now.” Squawk Box. “

A former chief economist at the International Monetary Fund (IMF) said, “If you take away the opportunity to launder money and evade taxes, its actual use as a tool will be minimal.”

Many illegal transactions have been linked to Bitcoin, the estimates of which vary in proportion to the use of digital currency used in illegal activities. According to Shone Anstein, co-founder and president of Blockchain Intelligence Group, the level of illegal transactions fell by 20 percent in 2016 and was “significantly lower” in 2017.

Rogoff said the government’s regulations would lower bitcoin prices, although it would take time to develop a global regulatory framework.

“It has to be a global arrangement. Even if the United States takes tough steps and China takes tough steps, even if Japan doesn’t, people will still be able to launder money through Japan,” he said.

According to the industrial site CoinDesk, bitcoin was sold at around $ 11,242.61 during trading in Asia on Tuesday morning. The price of the digital currency has fallen this year from a record of more than $ 19,000 in December last year.

According to Rogoffa, the authorities are passive in regulating bitcoin because of the expectation of the technology behind the digital currency.

“They want to see the progress of technology,” Rogoff said, adding that the private sector has historically “designed everything” in the history of currency, from standard coins to paper money.

Bitcoin is an important growth area as an application of blockchain technology that allows transactions to be stored and recorded.

However, in the past there have been claims that bitcoin has become cheaper. Before bitcoin was sold in December last year, Rogoff said digital currency estimates would “collapse” in October last year amid attempts by governments to regulate space.