Connect with us

Bitcoin

Nobel Laureate Economist Thinks the US Govt Has ‘Shut Down’ Bitcoin

Published

on

Nobel prize winning economist Joseph Stiglitz has, in a public event at the London School of Economics, stated that bitcoin has been “effectively” shut down by the U.S. government.

Joseph Stiglitz is, by any account, a renowned economist, an influential figure and scholar in world economics. The 73-year-old American is notably a recipient of the Nobel prize in Economic Sciences in 2001 and is currently a professor at Columbia University, New York.

Stiglitz has received over 40 honorary degrees from the likes of Harvard and Cambridge Universities while being decorated by several governments such as South Korea, Colombia, Ecuador and more. He was also the chief economist at the World Bank for three years between 1997 and 2000. The list of accolades above still does not do him justice, his Wiki article sums up an exhaustive survey of his credentials.

The Bitcoin Question

At a recent public event at London School of Economics while promoting his latest book, Stiglitz issued a public lecture before fielding questions from the audience.

It was here that Stiglitz was asked to offer his views on bitcoin. The question is notable in itself. A member of the audience asked Stiglitz:

Hi. My question is what is your opinion of bitcoin? Not necessarily on what is its impact, the trend and how it’s shaping the international system, globalization, but what is your perception of bitcoin and cryptocurrencies?

[In the way that] everyone being able to use and own their own banks and money, use it and trade it without any government regulation, authority. It is thoroughly decentralized and it’s unregulated, freely by the markets.

[My question is] It’s not about the impact of cryptocurrencies, but your personal philosophical opinion about the creation of cryptocurrencies. Thank you.

The question was sweeping in its context and summarized the-most-unique facets and functionalities of bitcoin, compared to fiat currencies. Unregulated and decentralized, a significant innovation to be sure. Wall Street seems to agree, in the way banks are flocking toward blockchain technology – the core innovation powering bitcoin.

The Response

The stage was set for Stiglitz – the 4th most influential economist in the world according to academic citations as of August 2016 – to offer what could very well be his first publicly-expressed opinion on bitcoin.

He replied:

My own view is: bitcoins have been greatly exaggerated. A common medium of exchange or a store of value is a basic public function and needs to be regulated.

Already, it is apparent that Stiglitz is, unsurprisingly, aware of bitcoin and the underlying potential that cryptocurrency observers praise it for.

For context, Stiglitz is the current Director of Graduate Summer Programs at the Brooks World Poverty Institute, an arm of the University of Manchester dedicated exclusively to research on poverty, inequality and growth around the world. One of bitcoin’s many advantages is the way in which it can help bring respite to those who remain unbanked, around the world. Mainstream media has frequently covered the very subject of bitcoin conflated with poverty.

However, Stiglitz’s comments reveal that he does not buy into the idea or notion of a borderless, unregulated world currency, free from any authority. Instead, he offers a very different take on what bitcoin, as he sees it, is meant for:

The main use of bitcoin has been to circumvent tax authorities and regulation. I think the US government did the right of thing of shutting or trying to shut it down and I think effectively…it has done that.

Stiglitz is, of course, mistaken in his view that bitcoin has been ‘shut down’ by the U.S. government. It begs the question: what was he referring to? It’s possible that the Nobel laureate could be referring to Silk Road, the darknet drug market that is prominently associated with bitcoin.

A Renegade Against the Institution

It is somewhat unfortunate that Stiglitz’s grasp of bitcoin is currently limited. This is a man who, as a Nobel prize winner and former chief economist at the World Bank, lambasted the International Monetary Fund (IMF) publicly in the past for its part in crises faced by economies around the world. His unrelenting criticism of the IMF, some say, even resulted in his departure from his role as the World Bank’s chief economist.

IMF

He once described of the IMF staff as:

“[T]hird-rate economists from first-rate universities.”

To expand on Stiglitz’s criticism of the IMF, a 2002 article from the Guardian reads:

The IMF made two big errors in the 1990s, in Mr Stiglitz’s view. The first was to bow to Wall Street’s demand for new markets, by making IMF loans conditional on countries opening up their financial sectors. The resulting rise in speculative capital flows has proved disastrous for fragile economies.

At the first sign of trouble, foreign investors pull out. At the height of the Asian crisis, some countries faced capital outflows of more than 10% of GDP.

The second error was to prescribe a mix of fiscal austerity and high-interest rates for the countries in the speculators’ firing line. Calling on countries running healthy budget surpluses to tighten their belts only intensified the recession

His stinging criticism of the IMF turned so many heads that the director of external relations at the IMF gave an entire speech that retorted the many accusations and criticisms of Stiglitz. That speech-in-response, from June 2002, is still available on IMF’s website.

As things stand, Stiglitz’s take on bitcoin is somewhat coinciding with that of Christine Lagarde, the managing director of the IMF. In a speech in late 2015, Lagarde was addressing bankers at a banking industry conference, quelling any fears that bitcoin and blockchain technology would threaten the banking industry.

Surely, there are a few students at Columbia University refreshing their pinned bitcoin price tabs while attending Stiglitz’s courses. It would be prudent to inform the professor that bitcoin is not only not-shut-down by the government, the cryptocurrency is also gaining in value recently.

Images from Shutterstock and Wikimedia.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 4.00 out of 51 vote, average: 4.00 out of 51 vote, average: 4.00 out of 51 vote, average: 4.00 out of 51 vote, average: 4.00 out of 5 (1 votes, average: 4.00 out of 5)
You need to be a registered member to rate this.
Loading...

4 stars on average, based on 1 rated postsSamburaj is the contributing editor at Hacked and keeps tabs on science, technology and cyber security.




Feedback or Requests?

18 Comments

18 Comments

  1. Douglas Crets

    September 7, 2016 at 3:14 pm

    Ha. Love how the headline is supposed to milk the conspiracy theorists for all their attention, but the first quote from Stiglitz is pretty much the real headline: IT AIN’T MUCH TO WORRY ABOUT!

  2. grahvity

    September 7, 2016 at 3:21 pm

    Yet another bitcoin obituary.

    • Orchideric

      September 27, 2016 at 5:54 am

      Haha indeed my thoughts exactly.

  3. Giulio Prisco

    September 7, 2016 at 4:48 pm

    I remember that in 1986 late unlamented Colonel claimed that he “destroyed” the Italian island Lampedusa. Actually, they fired a missile that went very much off-target and didn’t do any damage. This claim that the US Gov “shut down” Bitcoin looks similar to me.

  4. ViP Berbigao

    September 7, 2016 at 5:16 pm

    The Bitcoin is transparent, very transparent and very public. Another academic four walls. The correct for him are corrupt governments who steal the savings of people with inflation.

  5. 한재영

    September 7, 2016 at 8:40 pm

    How ? And i think if US gov want kill the Bitcoin, they need Internet Shutdown. But lot of business melted within internet. that opinion is very stupid thinks.

  6. smd

    September 7, 2016 at 11:00 pm

    It will be an insult for Nakamoto to get Nobel prize while Stiglitz has one.

  7. Claudio Levrini

    September 8, 2016 at 9:50 am

    Ignorant and pretentious as you would expect from a former chief economist at the World Bank

    • Alexander Kopriwa

      September 25, 2016 at 2:41 pm

      And the IMF follows suite with Ms Lagarde… Transparency is NOT wanted.

      • Orchideric

        September 27, 2016 at 5:59 am

        Exactly… They are terrified of the Bitcoin blockchain, which is why Banking Cartel’s like R3 instantly formed. They’re scrambling to catch up so they can say Bitcoin has no advantage on speed; but transparency and decentralization will bite them in the butt. My prediction is that the moment they launch private chains, they will get hacked bigtime.

  8. Elwar

    September 8, 2016 at 2:27 pm

    Reminds me of Iraq’s Information Minister, Muhammed Saeed al-Sahaf, standing in front of his own media talking about how Iraq has defeated the US army while in a split screen it shows US troops downtown Baghdad.
    Nothing to see here. Everything is ok with the banks. Keep your money there.

  9. Ade

    September 8, 2016 at 4:50 pm

    40 Honorary Degrees in economics and still doesn’t know that the current centralised fiat ponzi scheme the world operates under is….a 200+ yr old get rich quick Scam for the 0.000001%

  10. Michael Bailey

    September 10, 2016 at 6:52 pm

    This has to be one of the most hilarious claims I’ve ever heard. It serves to demonstrate that “credentials” signify only one thing . . . that the holder is a top-notch pawn and mouthpiece of those who are really in control . . for now. Utter and complete ignorance doesn’t begin to describe the condition of this man’s mind. He hasn’t learned anything since studying Keynes in the 1960’s.

  11. Orchideric

    September 19, 2016 at 4:15 am

    Haha, as an American, I can assure you that Bitcoin has been welcomed with rolling out the red carpet and with open arms. The formation of the NYDFS and several other new regulations = nothing but loving adoption. Even in Florida where the Local Bitcoins fiasco happened the case was overturned.

    • WNDRKND

      September 24, 2016 at 3:21 am

      Even here in North Carolina, P2P sales are legal. Id say that’s about as open as it gets as far as making money legally.

  12. tracy lane

    September 27, 2016 at 5:57 am

    hyperhacktive1 @gmail .com is a professional hacker that specializes in exposing cheating spouse,and every other hacking related issues. he helps catch cheating spouse by hacking their communications like call, Facebook, text, emails, Skype and many more. i have used this service before and he did a very good job, he gave me every proof i needed to know that my fiancee was cheating. You can contact him on his email hyperhacktive1 @gmail .com to help you catch your cheating spouse, or for any other hacking related problems, he will definitely help you, he has helped a lot of people, contact him and figure out your relationship status. i wish you the best too.

    98

  13. Gimmel Yod

    October 3, 2016 at 8:02 pm

    Have you looked at “Noble-Prize recipients” over the last decade? Seriously. No, SERIOUSLY. Have you looked at the list? Because the “Noble Prize” has essentially been “shut down by the US Government”. Oh, they still have a “thing” called the “Noble Prize”, – but it has the same value as a “PreApproved Credit card” notice: NONE. ZER0. ZILTCH. NADA. From those who push JUNK-SCIENCE – to WAR-MONGERS who win “Peace prizes” — the “Noble Prize” means NOTHING other than the recipient is some sort of political whore.

  14. Gimmel Yod

    October 3, 2016 at 8:12 pm

    “God is dead” – Nietzsche
    “Nietzsche is dead.” – God

    Which statement has been PROVEN true?
    Bitcoin is trading at over $600/per. What was the value of the “Dollar” again?

You must be logged in to post a comment Login

Leave a Reply

Altcoins

Crypto Market Cap Plummets $42 Billion Over Six Days as Bitcoin Targets $5,000

Published

on

A staggering selloff in the cryptocurrency market over the past six days has investors searching for an elusive bottom on major assets like bitcoin, bitcoin cash and Ethereum. However, the breakdown of key technical levels, combined with the complete disregard for fundamentals, suggest the bottoming process has not yet concluded.

Crypto Selloff Deepens

The combined value all coins in circulation broke below $169 billion on Monday for the first time since October 2017. The selloff broke the floor wide open on last week’s bottom of $175 billion, setting the stage for a deeper correction in the short-term.

Trading volumes across major exchanges rose over the 24-hour cycle to reach a high of $17 billion, according to CoinMarketCap. In terms of adjusted volumes, Binance was the largest cryptocurrency exchange with daily turnover of $1 billion. OKEx processed $939 million worth of transactions, based on latest available data. Both exchanges saw their daily turnover jump more than 67%. Bitfinex experienced the most dramatic upsurge in volume, as turnover spiked 243% to $503.6 million.

OKEx was in the spotlight for all the wrong reasons Monday, as users lashed out against the exchange for prematurely closing open positions on bitcoin cash futures contracts. The closing of the contracts on Nov. 14 occurred without warning, leading to sizable losses across its userbase. The decision to force early settlement reflected ongoing confusion about how to handle the bitcoin cash hard fork.

Kraken has already credited bitcoin SV tokens to existing BCH holders but has warned of extreme risks of trading the new coin. In a Sunday blog post, the exchange described a number of “red flags” associated with SV, including a lack of wallets to support replay protection and “temporarily constrained” supply. It’s also likely that a large chunk of BCH SV holders will dump the currency with any notable price increase.

Bitmain founder and ardent ABC backer Jihan Wu has publicly expressed his desire to dump SV as quickly as possible.

“I am wondering when I can deposit my BSV token into exchange to sell,” the billionaire tweeted Saturday.

Battle Over Bitcoin Cash Intensifies

The battle over bitcoin cash has direct implications on bitcoin, the leading digital currency whose market cap has plunged by nearly $20 billion over the six-day selloff. Craig Steven Wright, one of the main backers of the bitcoin SV chain, has threatened to tank BTC if its miners switch over to bitcoin ABC, which is the main implementation of the BCH hard fork.

Bitcoin is also being influenced by Roger Ver’s decision to divert the entire bitcoin.com mining pool to ABC, a move that angered some users who say they never intended to mine bitcoin cash. The hash war exposes bitcoin cash to security risks as pools associated with bitcoin SV chain mine threaten to mine empty blocks or carry out 51% attacks. According to CCN, several pools and individual miners are likely to take an opportunistic approach via chain surfing, which automatically changes between chains based on block difficulty.

Price Outlook

In the meantime, market observers have set a new price target for bitcoin at $5,000. Based on latest price action, a drop below that level is likely in the short-run as the psychological $5,000 support comes under attack.

As for bitcoin cash, prices hemorrhaged another 8% on Monday to reach a new seven-month low of $352. The fourth-largest cryptocurrency is down a whopping 33% compared with last week – losses that outpaced all major cryptocurrencies in the top-20. BCH risks a further drop to the low $300s and possibly below that threshold should the hash war continue unabated.

Ethereum emerged as one of the biggest losers of the Monday selloff, with declines exceeding 11%. Ether is currently trading hands at $155, the lowest since May 2017.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 670 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




Feedback or Requests?

Continue Reading

Analysis

Crypto Update: New Bear Market Lows Across the Board

Published

on

The key long-term breakdown in the cryptocurrency segment that we observed last week continued in earnest today, with most of the majors hitting new bear market lows amid another wave of heavy selling. Bitcoin dropped below $5200 for the first time since last October, Ethereum violated the key $160 level, Litecoin plunged below $38, with only Ripple and Stellar.

The post-breakdown bounce faded as we expected, and today’s broad selloff took the total value of the market below $175 billion, and for now, our trend model still shows and overwhelmingly bearish picture. With that in mind, traders and investors should still not enter new positions, with both the short- and long-term downtrends clearly being intact in the segment.                

BTC/USD, 4-Hour Chart Analysis

Bitcoin is testing last week’s spike low currently after giving back all of its post-crash bounce, and spiking to a marginal new low in the process. The most valuable coin is down by 5% today, and although percentage-wise BTC is outperforming the smaller coins (which are down by 10% on average), from a technical perspective, it’s also in a highly negative setup.

Bitcoin will likely test the key support zone just above the $5000 level soon, and given the segment-wide trends, a push below that is likely in the coming weeks, with the next key support zone found between $4450 and $4500, and with short-term resistance now ahead near $5650.

ETH/USD, 4-Hour Chart Analysis

Despite the weak positive sings last week, Ethereum is now under heavy selling pressure, and the coin has been leading the whole segment lower today, plunging below the key $160 level, and testing the $150 level too. The bearish long- and short-term trends are intact, and traders and investors should still stay away from the coin, as a move towards the next key support zone near $130 seems likely in the coming weeks.

Ripple Holds on Above Key Long-Term Support

XRP/USDT, 4-Hour Chart Analysis

Ripple continues to withstand the segment-wide selling pressure, and it remains the only major coin not on a long-term sell single in our trend model, while firming its spot as the second most valuable coin due to the persistent weakness of Ethereum. That said the short-term picture remains negative, even with the coin trading clearly above the key $0.42-$0.46 long-term support zone.

For now traders and investors shouldn’t enter new positions, but long-term investors should still hold on to their coins, even considering the strong bear market in the other top coins. Further support levels are still found near $0.375 and $0.355, while resistance is ahead at $0.51, $0.54, and $0.57.

LTC/USD, 4-Hour Chart Analysis

After being stuck below the $44 support/resistance level during the bounce, Litecoin, one of the leaders of the bear market, quickly violated the next major support level near $38, once again confirming its weakness. Now, a move to the next support zone near $34.50 seems likely, and given the coin’s relative weakness, traders shouldn’t try to catch the falling knife yet.

XMR/USD, 4-Hour Chart Analysis

While Monero has been holding on above its prior bear market low near $80 until today, the coin was already on a sell signal on all time-frames, and today, it plunged below the key level, due to the sharp selloff in early trading.

Should the breakdown hold, the re-test of the $60 support would be very likely as there is now other support level between the two major zones. With that in mind, traders and investors shouldn’t enter new positions here, and the declining trend is firmly intact in the coin’s market.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
4 votes, average: 5.00 out of 54 votes, average: 5.00 out of 54 votes, average: 5.00 out of 54 votes, average: 5.00 out of 54 votes, average: 5.00 out of 5 (4 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 398 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




Feedback or Requests?

Continue Reading

Bitcoin

Bitcoin Price Crashes to New 2018 Lows as Selloff Resumes

Published

on

Bitcoin and the broader cryptocurrency market slumped anew Monday, setting the stage for a prolonged downturn that could open the door to new support levels being breached.

Market Update

The bitcoin price crashed nearly 8% on Monday to reach a new yearly low of $5,180 on Coinbase. At the time of writing, the BTC/USD exchange rate was valued at $5,126, down 7.1% compared with the previous day.

The leading digital currency is trading at a premium on Bitfinex, which last quoted the bitcoin price at $5,231.

Aggregate pricing data courtesy of CoinMarketCap shows a price-per-coin of $5,199 for a total market capitalization of $90.4 billion. That’s the lowest in 13 months.

Daily trading in BTC rose sharply on Monday, reaching a high of $5.6 billion. Derivatives trading platform BitMEX continues to dominate the bitcoin market, processing more than a third of the daily transactions.

At current values, bitcoin accounts for 53.3% of the entire cryptocurrency market, which is collectively worth $169.5 billion.

Hash War Continues

Bitcoin’s precipitous drop began early last week as bitcoin cash, the fourth-largest cryptocurrency, devolved into an all-out civil war. The bitcoin cash hard fork, which was executed Nov. 15, resulted in the creation of two competing chains vying for control of the network. The so-called hash war between bitcoin ABC and bitcoin SV continues to this day. And while the primary implementation (ABC) has the upper hand, backers of the competing SV protocol have vowed to continue fighting for the long haul.

In the meantime, cryptocurrency exchanges have struggled to execute the chain split, with some platforms taking an entirely different direction than the one they stipulated prior to the hard fork.

The Hong Kong-based OKEx exchange faced severe backlash Monday after it changed the terms of its bitcoin cash futures contracts without warning. As Bloomberg reports, the exchange forced the early settlement of BCH contracts on Nov. 14, resulting in severe losses for some of its traders. The firm had $135 million worth of BCH derivatives contracts on the books at the time of the forced settlement.

The outcome of the bitcoin cash hard fork will have direct implications on BTC and the broader cryptocurrency market. Craig Steven Wright, one of the main backers of SV, has threatened to crash bitcoin’s price all the way down to $1,000 if BTC miners switch to mining BCH.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 670 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




Feedback or Requests?

Continue Reading

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending