In an interview Cointelegraph, John Vaz, an economist and researcher at Monash University, says that prospects for Bitcoin (BTC) and cryptocurrencies depend on how governments respond to the current economic crisis.
John Vaz: Bitcoin will be like a pack of pipes!
The economist used a rather interesting comparison. He believes that Bitcoin will become a commodity tailored to … cigarettes in prison. What is going on? You will read in a moment …
Vaz is not surprised that Bitcoin fell in the first days of the crisis. He emphasizes that “Right now [12 i 13 marca] everything was falling down. ” Only a narrow group of assets such as gold that are seen as “Safe haven”, did not record any sharp price drops.
The economist also describes the perception of the US dollar as a safe haven as “strange”. He says “green” is probably “Worst managed assets“.
“The strange thing is that the US dollar is seen as secure haven, this is probably the worst managed asset […] due to some expenses that take place in the United States (…) “
– he thinks.
Bitcoin – its time is coming!
In the context of the crisis, Vaz sees an opportunity for Bitcoin. In his opinion, the same economic principles that “Above all, motivated to create Bitcoins and cryptocurrencies” will now further stimulate the development of these assets.
He claims that in some countries there will be a situation in which governments “They will want to protect their currency against devaluation [i] introduce currency controls. ” For this reason too “cryptocurrency it can become very attractive in many markets as a way to bypass currency controls. “
However, Vaz emphasizes that the success of Bitcoins will also depend on whether cryptocurrency will gain wider application, especially among institutions.
“Historically, money has value because people use it and think it’s worth using it. Cigarettes it money in prisons – no one thinks of them as money, but you can beat or kill someone [dla] for cigarettes “
– he explains and adds that cigarettes are gold in prisons. Therefore, during the crisis, BTC will gain in importance. It will start to play a new role in the economy …
Get notifications about important new market events.