Economist and deputy director at the International Monetary Institute at Renmin University, Qu Qiang, has forecasted the relation of Bitcoin and Society.
Joke or not, civilization as we know it may end because of Bitcoin as claimed by Qu. He mentioned 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, he shared that for the existing 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. In conclusion, that’s what really happened at the end of the Ming dynasty when they were short on silver.
Joke or Not – Twitter users react in fierce disagreement.
Qu has incredible expertise in financial products. Even with his broad expertise in the field, his communication has come under severe critique. He presently works at the Industrial and Commercial Bank of China (ICBC) as well as the Bank of Beijing.
Numerous crypto advocates believe that this is “state-sanctioned propaganda“. Other users assuming an “ultimate FUD.”
A bitcoin advocate mentioned the effort of Richard Von Glahn. According to him, the theory rooted in
“dubious theoretical and empirical grounds.”
Ming dynasty failed for numerous reasons. A deflationary silver spiral is definitely not part of it.
A different user twitted 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. The “Gold Reserves Act” was approved in 1934. This is to prohibit Americans from holding gold; after its wide usage posed a threat to the financial system.
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