Professor of the University of Zurich: "Bitcoin will not be able to replace fiat currencies and solve monetary problems" – Bits Media

Despite the rapid introduction of cryptocurrencies and an increase in the trust of the world population to Bitcoin, Some economists are still critical of flagship cryptocurrency.

Among them-Professor of Zurich University Hans-Joachim (Hans-Joachim Voth). IN a recent interview, he discussed modern monetary theory, According to which money is considered a state monopoly. That is, public resources are concentrated in the hands of the government. This theory suggests, that the state can solve many problems, releasing more money, without fear of the consequences and being an issuer of the currency. Вотх считает, that this theory is attractive, but not plausible.

The economist mentioned an alternative option-the Bretton Wood system or the Golden Standard, according to which each released monetary unit can be exchanged for a certain amount of gold. However, the Thech thinks, that this model will not solve current cash problems. The essence of the gold standard is, To limit the powers of governments and central banks to issue currency, Which is pretty stupid, Refers the Hans-Joachim. At the same time, the professor is pessimistic and in relation to cryptocurrencies. He is sure, that bitcoin will not be able to replenish the gaps in the Bretton Wood system and therefore is not able to become a full replacement of ordinary money.

“Blockchain technology, on the basis of which cryptocurrencies work, has different attractive properties. But I do not see a single problem, which can be solved using cryptocurrencies. At least, this is definitely not bitcoin, which has become a real disaster as for the environment, and in terms of transactions ", - said a professor of economics.

Hans-Joachim-not the only major scientist, who doubts the possibilities of cryptocurrencies. Last year, Professor Kornelsk University Esvar prasad (Eswar Prasad) suggested, that Bitcoin does not exist for long, since it can supplant more environmentally friendly cryptocurrencies. And a professor of economics and social sciences of the Indian Institute of Management in Bangalore Appukuttan Nar Damodaran (Appukutton Nair Damodaran) And completely stated, that Bitcoin has already failed as a means of payment.