The Economist and former Visiting Professor at the New School (NY), Angel Banchs, said that the price of bitcoin and other cryptocurrencies will fall a lot in the short term.
He also stated that cryptocurrencies might disappear. “I want to make my prognosis clear. Not only do I maintain that in the short term Bitcoin and cryptos will fall more, which is already starting to happen, but also that in the medium term they will disappear.”
Angel Banchs is a visiting scholar in different universities, previously he was a visiting professor at the University of New York City, ‘The New School’. Today he has his finance blog where he gives online classes also teachings about bitcoin.
The professor has a blog where he conducts courses related to economics and politics, where some lessons are related to bitcoin. According to him, bitcoin can reach zero, but the same will never happen with fiat money. If the demand for bitcoin drops to zero, the price goes with it.
He asserts that the state matters and that fiat money can only be controlled by the government to preserve its value and keep it safe from fraud or crime.
In other lessons, he argues that bitcoin is not a “hedge” against inflation, because the digital asset does not serve as a hedge against inflation due to its volatility.
Bitcoin supporters on the other hand believe that Bitcoin is a public, free, transparent, and limited supply digital currency that is available to anyone around the world.
Despite its volatility, bitcoin has appreciated over time. Today it is seen as a store of value not only by ordinary people but also by companies and governments.
Finally, bitcoin is still little used as a currency or store of value compared to currency. But those who understand the fundamentals of the digital asset know that they need it more for freedom.