In one of his most recent tweets, Steve Hanke, Johns Hopkins professor of applied economics, has criticised bitcoin’s value. The well-known economist who is vocal about the negative effects crypto can have on global economies, attacked bitcoin’s utility in , declaring.

Bitcoin is not a currency. Bitcoin is a highly speculated asset that has a fundamental value zero.

Hanke illustrated his opinions with a cartoon by Robert Rich. This was part of Hanke’s work for Hedgeye risk Management. Hanke compares bitcoin to other major fiat currencies like the dollar, yen and yen.

Bitcoin Community Responds

The bitcoin community quickly responded to Hanke’s comments. , a digital artist known for his work that is bitcoin-focused, tweeted a cartoon in which he depicted bitcoin being a better money option than fiat currencies.

Hanke was criticised by others, including Dr. Julian Hosp (CEO of Cake Defi), who wrote a counter to Hanke’s view. declaring

Bitcoin is useful. It is not clear how much. It is certain that there are people who desire its utility. It is also provably rare. Therefore, the statement that bitcoin is worth nothing is incorrect.

Hanke is a proponent of currency boards and dollarization as a way to solve inflation and devaluation issues in countries such as Argentina. He has repeatedly criticized bitcoin’s adoption and function.

Hanke, who was a critic of El Salvador’s adoption of bitcoin as a legal tender in June 2021, stated that it could lead to the collapse the country’s economy. He stated at the time that all El Salvador’s dollars could be ‘vacuumed’ and citizens would only have bitcoin.

This criticism grew in October 2021 when he said that Nayib Bukel, El Salvador’s president, was ‘playing fast [loose] again with El Salvador’s tax dollars’. He announced purchasing the bitcoin dip and 150 bitcoin.