Speaking to Yahoo Finance, Professor Steve Hanke stated that they know the price of Bitcoin (BTC) but they do not know its value, probably the value of BTC is zero.
Speaking to Yahoo Finance about Bitcoin, Hanke said that while exchange rates can be decided with the ratio of fiat currencies such as dollars and pounds, the BTC / USD rate does not comply with the logic.
Stating that the price of a shopping cart can be calculated with national currencies such as the dollar, the economist mentioned that it is difficult to calculate a shopping cart prepared in bitcoin, since most sellers in the world do not accept crypto currency in transactions.
"The value of fiat currencies such as the dollar, euro, and pound is determined by the support of nation-states, the level of trust placed in them by the majority of people, and the confidence in the authority of the issuing state."
Many bitcoin lovers, such as MicroStrategy CEO Michael Saylor, consider bitcoin to be "digital gold" and a digital asset that can protect it from inflation risk.
In an interview with his colleague Milton Friedman in 1999, “I think a reliable system will be developed where you can instantly transfer money from A to B over the Internet.” When asked about his predictions, Steve Hanke said:
“I know that most of the money generated by banks is already electronic, and as the internet continues to evolve, even more will be electronic.”
It was said that these comments of Friedman can be seen as a precursor to the emergence of CBDCs, which the central banks of almost all countries are trying to create. Stating that he expects the global economic recovery to slow down a bit in 2022, as the risks of the market increase due to new covid-19 variants such as Omicron, Hanke said that the main inflation is due to the excess of money invested.
Gareth Soloway, chief market strategist of the Market Technical Guidance platform, made a bearish forecast for BTC. Soloway expects the cryptocurrency to be bearish in the next 6 months. The leader expects the cryptocurrency to drop to around $30,000 or even $20,000 in 2022.