Famed Economist Slams Bitcoin As Asset With ‘Zero Value,’ Joins Growing Chorus of Criticism

Key Takeaways

• Prominent economists and investors renewed strong criticism of Bitcoin this week.
• Steve Hanke slammed Bitcoin as having ‘zero value.’
• Despite sharp skepticism, major crypto analysts remain bullish.
• Technical analysis signals both opportunity and risk.

Long-time Bitcoin skeptics renewed their criticism this week as crypto rebounded above the $90,000 mark.

However, for all of the criticism, bullish optimism remained from major industry players.

Bearish Outlook

Economist Steve Hanke recently reiterated his long-held view that Bitcoin has “zero fundamental value,” calling it a purely speculative asset.

Hanke, who has been a frequent critic of cryptocurrencies for years, said his position has been unchanged “since day one.”

He was joined earlier in the week by investor Michael Burry, who said Bitcoin’s rise into six-figure territory represents a speculative mania, calling the idea of Bitcoin at $100,000 “ridiculous.”

He argued that enthusiasm for the token has gone “too far.”

The investor added that Bitcoin was “worse than a tulip bulb,” claiming the technology had enabled criminal activity to operate “deep under.”

Burry’s comments echo earlier warnings he issued in 2021, when he described Bitcoin and other digital assets as a speculative bubble.

Gold advocate Peter Schiff, another long-standing critic, also dismissed the notion that Bitcoin’s recent decline was linked to broader risk sentiment.

He argued instead that the cryptocurrency is selling off because it is “huge casino,” in a heated debate with Binance’s CZ on stage.

Schiff previously said his “biggest mistake” was assuming others would understand why Bitcoin “wouldn’t work,” adding that many buyers “foolish enough” to believe in it would fail to sell.

Bullish Optimism Remains

Despite the renewed skepticism, some analysts and investors continued to maintain an optimistic outlook.

According to earlier reporting from Bloomberg, Fundstrat’s Tom Lee continues to expect Bitcoin to reach $150,000 to $200,000 soon.

Speaking onstage this week, Lee said Bitcoin could climb to $250,000 within a few months, calling Bitcoin and Ethereum “the two most important crypto platforms out there.”

In response to Hanke’s comments on Thursday, one bullish user retorted:

“There’s going to be a significant amount of cope when bitcoin is over $1 million per coin.

“I can’t wait!”

Technical Outlook

Technical indicators point to mixed signals.

CCN analyst Valdrin Tahiri said Bitcoin registered a “bullish engulfing” pattern and confirmed its first higher low in two months, with the price attempting to break above a diagonal resistance line.

A successful breakout could target $98,100 and $103,500, with the charts suggesting Bitcoin could rise another 8% before encountering significant resistance, Tahiri said.

However, Tahiri cautioned that shorter-term patterns warrant vigilance.

On the four-hour chart, Bitcoin is trading inside an ascending parallel channel, a formation typically associated with corrective moves.

If the bounce proves corrective, he warned, it could lead to “a trend reversal and new lows.”