Price of bitcoin will collapse, says economist who wrote the book on currencies


Market Watch, Kenneth Goff: Is the cryptocurrency bitcoin the biggest bubble in the world today, or a great investment bet on the cutting edge of new-age financial technology? My best guess is that in the long run, the technology will thrive, but that the price of bitcoin will collapse.

If you haven’t been following the bitcoin BTCUSD, +8.31%  story, its price is up 600% over the past 12 months, and 1,600% in the past 24 months. At over $4,200 (as of Oct. 5), a single unit of the virtual currency is now worth more than three times an ounce of gold.

Some bitcoin evangelists see it going far higher in the next few years. more …

Opinion: I have to admit that when Bitcoin began on Oct 31, 2008 I was skeptical. It took a long time for me to realize how significant a computer manufactured digital currency would become. My main doubt, then and now, is why the most powerful central banks would allow currency transactions that were outside their control?

Kenneth Rogoff’s post put it like this: “State won’t tolerate anonymous payments that facilitate money laundering and tax evasion.”

What I didn’t realize in 2008 is that Bitcoin and its multitude of new cousins could be the catalyst for central bankers to create their own version of a digital currency and make any other version illegal.

Once the bankers take that position it is a small step to creating a digital mark on each person to verify that the currency is approved for commerce.  Today’s microchip technology is already happening in companies like Three Square Market during a “chip party” in River Falls, Wisconsin as employees lined up this past August for microchips to be embedded in their bodies:

The higher that unregulated currencies go in value, the more scrutiny they will come under, paving the way for the eventual fulfillment of Revelation 13:16-17.

(See Today’s 7 am Global Economy Headline “IMF Could At Some Point Develop Its Own Cryptocurrency”)