Economist and deputy director at the International Monetary Institute at Renmin University, Qu Qiang, has forecasted about the relation of Bitcoin and Society.
Civilization as we know it may end because of Bitcoin according to Qu., announced that society descending into “a death spiral of deflation” if Bitcoin is widely accepted as a currency. In an audience with CGTN, Qu was asked regarding the worst imaginable scenario. To say that for the prevailing financial system if Bitcoin is generally used in China or the world.
I can tell you precisely what’s going to happen. We’re all going to die. This is not a joke.
Qu emphasized that Bitcoin has an insufficient total supply. This makes it a deflationary asset whose supply will not expand with the growth of human progress. He cited that,
Civilization will self-explode as occurred in the Ming Dynasty if Bitcoin is embraced worldwide.
The whole community is going to shrink and self-explode. That’s what occurred at the end of the Ming dynasty when they were short on silver.
Twitter users react in fierce disagreement.
Qu has incredible expertise in financial products. He’s presently employed at both the Industrial and Commercial Bank of China (ICBC) and the Bank of Beijing. Even with his broad expertise in the field, his communication has come under severe critique.
A couple of crypto advocates have stated this is “state-sanctioned propaganda, ” with other users assuming an “ultimate FUD.”
Another Bitcoin advocate mentioning the effort of Richard Von Glahn. He stated the theory is rooted in
“dubious theoretical and empirical grounds.”
Ming dynasty failed for numerous reasons. A deflationary silver spiral is definitely not part of it.
Another user commented that,
Qu has no reliable facts about the Ming Dynasty. His reply, which related to the British Museum’s history of the world. He claims that the Ming Dynasty was impacted by the circulation of too much paper money.
The Ming’s issued too much paper money; hyperinflation continued. By 1425 paper money was worth only a seventieth of its original value, and the government suspended the use of paper currency in China.
Financial experts warn about Bitcoin’s threat to the financial system.
The concern by Qu is in line with the statement of several financial experts in terms of Bitcoin and the financial system.
Lately, Brett Heath, the CEO of Metalla Royalty and Streaming, asserted that crypto would lead the charge into the next financial crisis. They agree that the wide acceptance will trigger a crackdown from policymakers and regulators, just like gold. In 1934, the Gold Reserves Act was passed. This is to prohibit Americans from holding gold; after its wide usage posed a threat to the financial system.
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