Harvard economist says bitcoin prices fall

In the next decade, Bitcoin could be worth more than $ 100 to $ 100,000, says a Harvard Economist

Kenneth Rogoff, a professor and economist at Harvard University, said on Tuesday that the price of bitcoin could drop to $ 100 a year, with more than $ 100,000 in digital currency trading in ten years.

Rogoff told CNBC: “I think Bitcoin would be worth less than the current small fraction if we left ten years later. Squawk box.”

“If you take the opportunity to avoid financial fraud and tax evasion, the actual use of it as a trading vehicle is very small,” said the chief economist of the International Monetary Fund (IMF).

Many illegal transactions have been linked to Bitcoin, and estimates vary proportionally with the use of digital currency used in illegal activities. According to Shawn Anste, co-founder and president of Blockchain Intelligence Group, the number of illegal transactions has dropped by 20 percent in 2016 and “significantly less” in 2017.

Although he emphasizes that it will take time to develop a global regulatory framework, the regulations introduced by the government will encourage the depreciation of bitcoin, Rogoff said.

“It has to be an international norm. Even if the United States oppresses it and China worries about it, if Japan does not do this, people can still cheat money through Japan,” he said.

According to industry insider CoinDesk, Bitcoin traded at $ 11,242.61 during Tuesday morning trading. The value of the digital currency fell by more than $ 19,000 in December last year.

Authorities have been unethical about controlling bitcoin because of the technology behind digital currencies, Rogoff said.

“They want to see the advancement of technology,” said Rogoff.

The application of blockchain technology to maintain and record bitcoin transactions is a major step forward.

However, there have been claims in the past that Bitcoin has fallen. Prior to the sale of Bitcoin last year, Rogoff said the value of the digital currency would “fall” as governments tried to take control of the site last October.