Jim Chanos, the man who predicted the collapse of Enron, has developed his own view of Bitcoin: It will collapse in case of a crisis. Official currencies, like the dollar, benefit when things are wrong, because governments can impose their use and act as end-of-life creditors, Jim Chanos said in an interview with the Institute for New Economic Thinking. Digital coins, on the contrary, do not have such support.
“If you think you need to have digital coins to get you out in case the worst case scenario happens, then you know that a digital currency will have no value,” he said, adding: “The last thing I would like to have if the network dissapear is Bitcoin ‘.
He attributes the enthusiasm for Bitcoin last year and other cryptos in the “cycle of fraud” that occurs when markets are profitable for a long time. It is then that the world becomes less cautious and proceeds to investments that would normally look very good to be true.
The upward market of the 1990s peaked with accounting scandals, as in the case of Enron. Later, another rally led to the global financial crisis of 2008, he said.
“Today we are in the ninth year of the last rising market, so I suspect that things are getting livelier,” he said.
Referring to Bitcoin and the rest of the cryptobonds, he points out that it is very simple for a “speculative game” presented as a technological revolution at the level of monetary policy.