Founding CEO of PayPal Says Bitcoin Is Heading to Zero, Yale Study Says Chances Are 0.3%
Despite the latest Bitcoin lashing from Bill Harris, former CEO of Intuit and PayPal, who claims cryptocurrency is “going to go a whole lot closer to zero”, Yale economist Aleh Tsyvinski and Yukun Liu, a Ph.D. candidate in the Department of Economics, argue that Bitcoin has a 0.3% chance of going to zero. Their study is an unemotional take on the state of cryptocurrency and an analysis of market behavior. It lacks both corporate bias and crypto fanaticism.
“We’ve done something very simple. We said: Let’s use textbook finance tools to help us better understand cryptocurrency. We looked at three major cryptocurrencies: Bitcoin, Ripple, and Ethereum. We wanted to identify their basic properties. We examined whether they behaved like other asset classes, specifically stocks, traditional currencies, and precious metal commodities. We also gauged their potential for benefiting or disrupting various industries.” – YaleNews The researchers concluded that the probability, “in the view of the markets”, that Bitcoin falls to zero and becomes useless is 0.3%.
Bitcoin (BTC) is up 0.54% over the past 24 hours and is currently trading at $6,284.60 on Coinbase. BTC dominance is at 53.5% and the total cryptocurrency market cap is currently at $202 Billion