Bitcoin (BTC) adoption could cause society to ‘shrink and self-explode,’ warns Chinese economist

Various Bitcoin critics have pointed out various risks posed by BTC such as its volatility, its potential use for terrorism, its lack of intrinsic value, and its carbon footprint. But a Chinese critic set himself apart by painting the gloomiest picture yet by stating that “We’re all going to die” and the society could “shrink and self-explode” once the crypto becomes widely used.

Chinese economist and assistant director at the International Monetary Institute of Renmin University, Qu Qiang, offered his dire prediction in an interview on CGTN, which is owned by state media China Central Television, according to Bitcoin.com. A recording of the interview was shared by former Coinbase regulatory counsel Hailey Lennon who explained that the interview was aired on TV when she entered her hotel room.

During the interview, Qu was asked if he could provide the worst scenario and the kind of a systemic shock to the financial system that’s going to happen “if bitcoin is widely used in China or the rest of the world.”

“I can tell you exactly what’s going to happen … We’re all going to die,” the economist replied. “This is not a joke.”

Qu explained that since the number of BTC coins has a limit, the crypto’s supply won’t expand alongside human development. “Bitcoin has a very, very strict, limited total number, which means this is a deflation currency,” he said.

He predicts society to fall into “a death spiral of deflation” if Bitcoin becomes widely adopted as a currency. “The whole society is going to shrink and self-explode,” Qu added. “That’s what happened at the end of the Ming dynasty when they were short on silver.”

However, many challenged Qu’s statement about the fall of the Ming dynasty. “Ming dynasty collapsed for many reasons but a deflationary silver spiral ain’t one of them,” a Tweeter user said, citing work by Richard von Glahn, who stated that “This hypothesis rests on dubious theoretical and empirical grounds.”

“The state issued too much paper money, however, causing hyperinflation,” another Tweeter user quoted the British Museum’s history of the world to counter Qu’s statement. “By 1425 paper money was worth only a seventieth of its original value and the use of paper currency in China was suspended.”

TokenPost | [email protected]