Economist Steve Hanke calls Bitcoin a Ponzi scheme with no intrinsic value

Economist Steve Hanke has delivered a scathing critique of Bitcoin, asserting that the cryptocurrency has no intrinsic value. Hanke, known for his expertise in applied economics, argued that Bitcoin's price is purely speculative and driven by market sentiment rather than any fundamental value. He compared Bitcoin to a Ponzi scheme, where early investors profit at the expense of later ones, and warned that the cryptocurrency's volatility makes it unsuitable as a store of value or medium of exchange.

Hanke's comments come at a time when Bitcoin has gained significant attention and investment, with proponents touting its potential to disrupt traditional financial systems. However, critics like Hanke point to the cryptocurrency's lack of regulatory oversight, susceptibility to hacking, and environmental impact as major concerns. Hanke's critique is not the first of its kind, as other economists and financial experts have also expressed skepticism about Bitcoin's long-term viability.

The debate surrounding Bitcoin's value and potential is far from settled. While some see it as the future of finance, others, like Hanke, view it as a risky and unsustainable investment. The cryptocurrency's price fluctuations and lack of intrinsic value make it a contentious topic among economists and investors alike. As the market for digital currencies continues to evolve, it remains to be seen whether Bitcoin will prove to be a revolutionary technology or a passing fad.