{"id":144505,"date":"2021-02-25T20:15:29","date_gmt":"2021-02-25T14:45:29","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=144505"},"modified":"2021-02-25T18:23:19","modified_gmt":"2021-02-25T12:53:19","slug":"will-bitcoin-fall-to-zero-after-death-spiral-this-economist-thinks-so","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/will-bitcoin-fall-to-zero-after-death-spiral-this-economist-thinks-so\/","title":{"rendered":"Will Bitcoin fall to zero after a “death spiral”, this economist thinks so"},"content":{"rendered":"

Joining a list of Bitcoin<\/a> skeptics Professor of applied economics at John Hopkins University, John Hanke argued that Bitcoin’s continued rally was driven entirely by a herd of speculators. According to reports<\/a>, Hanke highlighted that Bitcoin\u2019s fundamental value is zero because it doesn\u2019t pay interest like most fiat monies.<\/p>\n

According to him, \u201cBitcoin doesn\u2019t pay interest that\u2019s why you can say unambiguously that it has a fundamental value of zero.\u201d<\/p>\n

He goes on to say that its market value is entirely based on what market participants are putting on it, and that and fundamental value are two entirely different things.<\/p>\n

\u201cIt\u2019s obviously a highly speculative thing, it\u2019s very volatile and that gets into the fact that it is not a currency because it\u2019s not a stable unit of account.\u201d, says Hanke, who believes that ultimately it will approach its true fundamental value of zero after going into a \u201cdeath spiral\u201d.<\/p>\n

The professor considers comparisons between Bitcoin and gold to be a \u201cjoke\u201d and he believes that comparisons of this nature actually harm the reputation of the golden constant.<\/p>\n

Earlier this month, a prominent investor and long-term gold advocate Jeffrey Gundlach said that he had changed his stance on Bitcoin and gold.<\/p>\n

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I am a long term dollar bear and gold bull but have been neutral on both for over six months. Lots of liquid poured into a funnel creates a torrent. Bitcoin maybe The Stimulus Asset. Doesn\u2019t look like gold is.<\/p>\n

— Jeffrey Gundlach (@TruthGundlach) February 18, 2021<\/a><\/p><\/blockquote>\n