Citigroup Chief Economist on Bitcoin: Equilibrium Value Is Zero

  • There is an equilibrium value for bitcoin which is zero, like all fiat currencies,” he said.
  • Buiter thinks bitcoin is purely speculative and “not something that ordinary mortals should get anywhere near” and contrasted it to fiat money and gold, which he previously said he would own as part of a diversified portfolio.
  • “Gold has some intrinsic uses, fiat currencies issued by the government have at least a central bank that attempts to stabilize their value in terms of goods and services,” he said.
  • And despite his opposition to bitcoin, Buiter is a fan of blockchain technology and thinks it may be used by central banks in the future to settle cross-border transactions.
  • “We don’t know how well it will scale, but it could be very useful for transactions between central banks, for cross border transactions, for entities that currently use centralized ledgers to make such transactions,” he said, calling bitcoin an “unfortunate start” to the whole blockchain revolution.

  Despite working for the biggest bank in the world, Willem Buiter is not a fan of money. He called gold a 6,000-year bubble and thinks fiat currencie
Continue reading “Citigroup Chief Economist on Bitcoin: Equilibrium Value Is Zero”

Citigroup Chief Economist on Bitcoin: Equilibrium Value Is Zero

@Citi chief economist Willem Buiter not a fan of #Bitcoin, do his arguments have any merit?

  • There is an equilibrium value for bitcoin which is zero, like all fiat currencies,” he said.
  • Buiter thinks bitcoin is purely speculative and “not something that ordinary mortals should get anywhere near” and contrasted it to fiat money and gold, which he previously said he would own as part of a diversified portfolio.
  • “Gold has some intrinsic uses, fiat currencies issued by the government have at least a central bank that attempts to stabilize their value in terms of goods and services,” he said.
  • And despite his opposition to bitcoin, Buiter is a fan of blockchain technology and thinks it may be used by central banks in the future to settle cross-border transactions.
  • “We don’t know how well it will scale, but it could be very useful for transactions between central banks, for cross border transactions, for entities that currently use centralized ledgers to make such transactions,” he said, calling bitcoin an “unfortunate start” to the whole blockchain revolution.

  Despite working for the biggest bank in the world, Willem Buiter is not a fan of money. He called gold a 6,000-year bubble and thinks fiat currencie
Continue reading “Citigroup Chief Economist on Bitcoin: Equilibrium Value Is Zero”