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April 13, 2021
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Bitcoin

“Bitcoin is for suckers,” says Professor Steve Hanke

It looks like Steve Hanke is not exactly a Bitcoin fan

Steve Hanke, professor of applied economics at Johns Hopkins University, once again targeted Bitcoiners on his October 5th tweet, pointing to a recent study that supposedly exposed his financial illiteracy.

Hanke used the old saying about a sucker being born every minute, which is widely attributed to American showman and businessman P.T. Barnum.

Bitcoiners and players

According to a Bank of Canada survey published in August, investors with low financial literacy are twice as likely to put their money in Bitcoin (8% and 4%, respectively). Those with substantial financial skills tend to be more aware of Bitcoin, but prefer to avoid the flagship cryptocurrency.

This makes the game for Bitcoin critics who believe that cryptocurrency is equivalent to gambling. Numerous studies conducted over the past decade have found that those who spend money on casinos, lotteries and sports betting have less financial education.

On a article published by the American Institute for Economic Research (AIER), financial blogger JP Koning writes that seeing Bitcoin as a rebellion against the corrupt financial system will encourage even more gambling:

“If players hear that they are not really betting, but helping to overthrow the banking oligarchy or replacing corrupt fiat money, then they are likely to play even more.”

Cryptocurrency illiteracy

Barnum gained prominence by creating several infamous prank calls, such as the mermaid “Feejee”. His saying that illustrates how there are always people willing to be deceived fits Steve Hanke’s anti-Bitcoin narrative, which routinely compares the orange coin to the Dutch tulip bubble and says it should be avoided like the plague.

However, Hanke – who got involved in a stablecoin project in 2018 – tends to exhibit his own cryptocurrency illiteracy. In August, he embarrassingly stated that Bitcoin should be linked to gold, exposing his lack of basic understanding of how cryptocurrency really works.

Source: U.Today

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