U.S. economist warns of Bitcoin mania doubting its real social value

Updated 2017-12-13 13:32:19 Xinhua

Renowned U.S. economist Joseph E. Stiglitz said here Tuesday that he believes the crypto currency Bitcoin "has no social value" and that he would be surprised if the rally would continue in 2018.

He made the remarks at the one-day annual Arab Strategy Forum held in Dubai in its 10th edition.

"The U.S. government can shut down Bitcoin at any time if it wants to do so," said Stiglitz, who received the Nobel Memorial Prize in Economic Sciences for his research on market information in 2001.

Bitcoin rose to 19,000 U.S. dollars per unit in value on Thursday from 3,000 dollars per unit in August.

On Sunday, the Chicago Board Options Exchange launched Bitcoin futures as the first regulated U.S. exchange, pushing the price of the crypto currency higher by around 26 percent that day.

"I think the dollar is still the currency of choice because you can buy goods around the world, while the greenback also has not lost its power as medium of exchange, which the Bitcoin allegedly offers as a crypto currency free of central bank regulation," Stiglitz said.

The U.S. economist also compared the passion for Bitcoin to the tulip mania in the Netherlands in the 17th century.

The tulip mania, also called the mother of all speculations, lifted the price of a flower unit to the value of a villa in Amsterdam within a few years before prices collapsed in May 1637, dragging thousands of tulip buyers into bankruptcy.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58March 18 2018 08:24:54

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16March 18 2018 08:24:54

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18March 18 2018 08:24:54

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords