The Spanish Angel Banchs, master in Economics and Finance, said on Friday (21) on his social networks that the price of bitcoin and other cryptocurrencies will fall a lot in the short term. Furthermore, he also stated that in the medium term cryptocurrencies will disappear.
“I want to make my prognosis clear. Not only do I maintain that in the short term Bitcoin and cryptos will fall, which is already starting to happen, but also that in the medium term they will disappear.”
I want to make my prognosis clear.
I not only maintain that in the SHORT term the #Bitcoin and the cryptos are going to crash, which is already starting to happen, but at MEDIUM they will disappear.
– Ángel García Banchs (@garciabanchs) January 21, 2022
Angel Banchs works as a private teacher, he used to teach at universities, yet today he has his own finance blog where he reproduces online classes. However, among the classes he offers, there are teachings about bitcoin.
Bitcoin could reach zero
The professor has a blog where he teaches courses related to economics and politics, among the classes he offers, some are related to bitcoin. According to him, The bitcoin can reach zero, but the same will never happen with fiat money. That is, according to him, if the demand for bitcoin drops to zero, the price goes with it.
In this way, he asserts that the state is important and that fiat money (currency) can only be controlled by the government to preserve its value and keep it safe from fraud or crime.
In other classes, he defends that bitcoin is not a “hedge” asset, that is, a digital asset that does not serve as a hedge against inflation due to its volatility.
Bitcoin as Digital Gold
Bitcoin is a public, free, transparent and limited supply digital currency that is available to anyone around the world, and there is no charge for its use.
Despite its volatility, bitcoin has proven itself in time and was valuing himself with him. Today it is no longer seen as a store of value only by ordinary people, but also by companies and governments.
Finally, bitcoin is still little used as a currency or store of value compared to currency. But those who understand the fundamentals of the digital asset know that they need it more for freedom.