Why Economists Don’t Like Bitcoin (Part II)

Let’s take a look at some good reasons

Chart showing the decline of Bitcoin’s price in US dollars in recent weeks.

Bitcoin is a Game

Spinning roulette wheel
Photo by Adi Coco on Unsplash

Digital Gold

Bitcoin represented as gold coins
Photo by Kanchanara on Unsplash

Summary

Economists have been glib in their assessments of Bitcoin. There are actually legitimate economic concerns but they rely on consumer irrationality or market power arguments rather than simple distaste or even market failure. If economists are going to engage properly on their concerns, they need to articulate those concerns within standard and well-developed frameworks. At present, they look more like children saying “they just don’t like it” or conservative people saying “it’s not the way we do things.” That isn’t helping.

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Joshua Gans

Skoll Chair in Innovation & Entrepreneurship at the Rotman School of Management, University of Toronto and Chief Economist, Creative Destruction Lab.