Andy Xie is a famous economist known for predicting the 1997-98 currency crisis in Asia. However, he’s also been especially critical of Bitcoin calling it a “gambling craze.”
Economist Andy Xie does not seem to think Bitcoin has much value beyond just gambling. He warned that cryptocurrencies will never be recognized as legal currency due to their volatility, as he told the Korea Post recently.
Bitcoin is a ‘Gambling Craze’
Xie believes that Japan, Korea, and China has allowed the ‘gambling craze’ of Bitcoin go on for too long. The former Morgan Stanley economist says that because cryptocurrencies cannot be used to create bonds, they will ultimately fail. Any government who would attempt so with such volatility would surely go bankrupt.
The economist also gave his thoughts on Facebook’s Libra calling it a “clever idea” which will likely draw people in. However, he also believes it to be “bad for Bitcoin” because it directly competes with it. Yet, Xie clarifies that Libra’s downward effect on Bitcoin’s price will not be immediately obvious since the Libra will likely bring more visibility to the cryptocurrency space.
East Asia Will Lose Money
Overall, Xie remains ultimately very bearish on Bitcoin’s future prospects and believes that Wall St. will never allow Bitcoin to top $20,000 ever again.
More importantly, he sees the current market manipulation by major American firms as a means of robbing East Asia. “Wall Street has set up a futures market in Chicago,” Xie says, “The traders there could push it back when it is that high. They would push it down until the people in East Asia panic and run.”
As the cryptocurrency “game,” as Xie calls it, continues to grow, East Asia will only lose more due to its cryptocurrency gambling issue. “East Asians lose about $100B in gambling every year,” he stressed. With cryptocurrencies taking over, he jokes that “eventually you will see physical casinos closing down.”
However, Xie seems to only be focused on Bitcoin. There are plenty of new technologies and projects being built on blockchain technology which are developing real-world use cases. Although Xie is a veteran economist, the Korea Post interview seems to indicate that he is talking about a topic beyond his depth. Regardless, time will tell if he is right about East Asians losing money on what he calls the “crypto-casino.”
Do you agree that Bitcoin’s price will be held back by major Wall St. players? Let us know your thoughts below.
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