Harvard economist Kenneth Rogoff once predicted that Bitcoin would fall to $100, and he now acknowledges that significant changes have occurred over the past seven years, although he still seems skeptical about Bitcoin.
Rogoff noted that he was overly optimistic in believing that the U.S. would adopt reasonable cryptocurrency regulations, a prediction that has not come to fruition. Since Trump's election, Bitcoin has surpassed $100,000 and reached new highs in December 2024.
Rogoff mentioned that he underestimated the importance of Bitcoin as a tool for transaction in the global underground economy, competing with fiat currencies. Additionally, Bitcoin has become a hedge against inflation in certain countries.
Although the amount of illegal activities related to cryptocurrencies in 2024 is $50 billion, it still pales in comparison to cash laundering. Rogoff is surprised that regulators have largely gone unpunished for holding significant amounts of cryptocurrency.
Bitcoin remains in the spotlight
Matt Hougan, Chief Investment Officer at Bitwise, stated that Rogoff failed to envision the success of decentralized projects. Meanwhile, Matthew Sigel, head of digital asset research at VanEck, said that Rogoff had long prematurely dismissed Bitcoin.
Ironically, Harvard Management Company reported earlier this month that they invested $116 million in BlackRock's spot Bitcoin ETF.
