A Chinese economist and assistant director at the International Monetary Institute of Renmin University, Qu Qiang, has predicted that â€œWeâ€™re all going to dieâ€ if bitcoin becomes widely adopted as a currency. He foresees our society falling into â€œa death spiral of deflation,â€ noting that â€œthe whole society is going to shrink and self-explode.â€
Weâ€™re All Going to Die if Bitcoin Is Widely Adopted, Predicts Chinese Economist
An assistant director at the International Monetary Institute of Renmin University, Qu Qiang, was interviewed on CGTN about bitcoin. CGTN is owned by the Chinese state media China Central Television (CCTV). The video of his interview was shared on Twitter Thursday by Hailey Lennon, who said she walked into her hotel room and it was playing on TV.
Qu was asked: â€œCan you give me the worst scenario, what kind of a systemic shock it will give to the current financial system if bitcoin is widely used in China or the rest of the world?â€ He replied:
His answer was what he called â€œThe worst scenario or the must scenarioâ€ that will happen if bitcoin were to become â€œthe ultimate type of currencyâ€ and â€œadopted by all human society.â€
Qu then pointed out that â€œBitcoin has a very, very strict, limited total number, which means this is a deflation currency,â€ noting that it will not expand the amount as human development grows.
Consequently, he asserted that with bitcoin adoption, our society will fall into â€œa death spiral of deflation.â€ He elaborated: â€œThe whole society is going to shrink and self-explode. Thatâ€™s what happened at the end of the Ming dynasty when they were short on silver.â€
Qu graduated and received his doctorate in economics from Renmin University of China, where he is now a professor and a doctoral advisor. He currently serves as the external supervisor of the Bank of Beijing and the Industrial and Commercial Bank of China (ICBC). Among numerous positions he is holding is a director of the China Financial Policy Research Centre, a key research center of humanities and social sciences of the Chinese Ministry of Education.
Bitcoiners had a field day over Quâ€™s comments on social media. Many just laughed excessively, with some calling the whole thing an â€œultimate FUDâ€ and â€œstate-sanctioned bullshit propaganda.â€
Some debunked his silver theory. One person tweeted: â€œMing dynasty collapsed for many reasons but a deflationary silver spiral ainâ€™t one of them,â€ citing work by Richard von Glahn, who wrote, â€œThis hypothesis rests on dubious theoretical and empirical grounds.â€
Many mocked his knowledge of the fall of the Ming dynasty. One person suggested: â€œThis could easily be a SNL [Saturday Night Live] skit except funnier.â€ Another exclaimed: â€œEnd of the world. Beware.â€ A third person said, â€œI didnâ€™t know bitcoin ended the Ming dynasty.â€ A fourth person chimed in, â€œImagine if we had hodled since the 15th century.â€
One user got more serious and stated that â€œfor the record, he [Qu] is clueless about Ming dynasty.â€ Quoting the British Museumâ€™s history of the world, he wrote: â€œThe Ming â€¦ state issued too much paper money, however, causing hyper-inflation. By 1425 paper money was worth only a seventieth of its original value and the use of paper currency in China was suspended.â€
What do you think about Quâ€™s comments on bitcoin? Let us know in the comments section below.