Bitcoin (BTC) slides to $45K as top economist dubs the asset ‘snake oil’

  • Bitcoin critic Steve Hanke has called on investors to avoid Bitcoin due to its extreme volatility, susceptibility to fraud, and future uncertainty.
  • Despite a pullback at the start of the week, experts continue to predict an explosive Q4 for Bitcoin.

Bitcoin critic Steve Hanke has taken a swipe at Bitcoin (BTC) once again. The professor of applied economics at the Johns Hopkins University and former economic advisor to Ronald Reagan has in his latest comments called Bitcoin, snake oil – a popular term used to describe a scam. He has further argued that Bitcoin is highly volatile with a fundamental value of zero. His comments are timely as Bitcoin has taken a major slide in the last few hours making a 5 percent price correction that has pulled it back to the $45K support level.

At the time of press, our data shows that Bitcoin is exchanging for $45,500 with a market cap of $857 billion. With a market dominance of 42.7 percent, the top asset has successfully dragged the rest of the market with it. The total market cap has lost around 6 percent in the last 24 hours. However, despite the drop, the total market cap is clinging to the $2 trillion mark.

The renowned economist who has in recent weeks been critical of El Salvador for its adoption of the Bitcoin law wrote on Twitter;

Don’t buy the #Bitcoin snake oil the crypto bulls are selling. Its extreme volatility, susceptibility to fraud, and uncertainty are all reasons why BTC will never be suitable as a true currency. Bitcoin is a highly speculative asset, with a fundamental value of ZERO.

Additionally, in an attack on El Salvador, the economist has noted that El Salvadoran bonds have been in distress for 2 weeks now as a result of its newly passed Bitcoin law. Previously, Hanke has stated that it would be insane to introduce a Bitcoin law in El Salvador citing corruption and flaws in Bitcoin’s design.

Related: It’s official! El Salvador becomes the first country to buy and make Bitcoin a legal tender

El Salvador buys the BTC dip

Despite the criticism, El Salvador continues to push for Bitcoin adoption. In the latest development, President Bukele has confirmed that the government has bought the dip. According to his announcement in which he offered some presidential advice; they can never beat you if you buy the dips, the government has acquired an additional 150 Bitcoins and now has 700 coins in its reserve.

Despite the dip, experts continue to predict an explosive Q4. The latest to make this prediction is crypto analyst Lark Davis.

Related: Experts anticipate an explosive Q4 for Bitcoin (BTC) as the asset approaches $50K

Davis noted that in both 2013 and 2017, Bitcoin managed to mark a 300 percent price jump in Q4. The analyst expects that the digital asset will post similar gains this year. He wrote;

I still believe that Q4 will be very bullish for crypto and that bitcoin will hit 100k by EOY. I also believe most will get totally caught up in the euphoria and hand most of their paper gains back to the market. Don’t let that be you!

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John Kiguru is an astute writer with a great love for cryptocurrency and its underlining technology. All day he is exploring new digital innovations to bring his audience the latest developments.

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