“Armageddon” economists have been proven wrong by the economic recovery of the past few years. Many will likely be just as wrong about Bitcoin and cryptocurrencies.
The economic forecast looks surprisingly good, but some economists were saying otherwise a few years ago.
Doomsday Economists and Naysayers Proven Wrong
Since 2014, so-called ‘Armageddon economists’ were seemingly saying it all. Some claimed that a crash was imminent and to go into bonds to wait out the storm. Others, like Peter Schiff, just began incessantly shilling gold on Twitter. The forecast by some economists after 2014 was, to put it mildly, grim.
As Nick (@NickatFP) shared on Twitter, these leading economists and negative nancies have proven themselves unreliable. If one had followed their advice as an investor, the amount of unrealized profits would have been astronomical, similar to the case with Bitcoin as of now. The below chart shows how low one’s performance would have been as an investor for every $1 moved from the S&P 500 to the Barclays Aggregate Bond Index.
hahaha jpm guns blazing pic.twitter.com/08TXOiGY0G
— Nick (@NickatFP) November 12, 2019
As you see, it doesn’t look good.
The bottom line is, none of these doomsday economists were proven right—the economy has been booming. Given that they have been so wrong for the past few years, can we really trust their opinions on emerging technologies, especially Bitcoin and cryptocurrencies?
What the ‘Armageddonists’ Say about Bitcoin
Some of these economists have, indeed, spoken out against Bitcoin. In 2018, for example, economist Paul Krugman penned a piece titled “Transaction Costs and Tethers: Why I’m a Crypto Skeptic” in the New York Times. The tone was, as you might expect, dismissive of Bitcoin. Others, like Peter Schiff, have echoed similar criticism of Bitcoin and instead opting for gold as the end-all investment.
However, some of these doomsday economists have the right idea after all. For example, economist David Levy has been a known cryptocurrency bull, producing the documentary “Banking on Bitcoin.”
For some of these economists, their heart might be in the right place. At the end of the day, they’re against the instability of fiat currency. That much is reasonable in the abstract and as a long-term assessment. However, there’s really no denying that, in the short-term, these doomsday economists have been proven wrong and investors were smart not to listen.
Images are courtesy of Shutterstock, Twitter.
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