Did Steve Hanke find a way out of the hole he’s been digging himself into for all these years? The economist holds the world record for the person with the highest number of terrible Bitcoin takes, with almost 13 years of failed predictions. And now, out of nowhere, he seems to like the world’s second cryptocurrency by market capitalization. What does he like about Ethereum, though? The “560% price surge this year,” of course. But there’s more… 

Wait… is Steve Hanke into NFTs? The man said, “Ethereum has become increasingly popular amongst DeFi and NFTs” without a hint of irony. He also said, “Ethereum is giving Bitcoin a run for its money,” which is the most positive thing Steve Hanke has said about Bitcoin in over a decade. And, in the end there, he leaves space for possible deniability, “Has the look of a bubble. But, is it?

The economist also links to an extremely basic and clumsy CNN article. Is Steve Hanke warming up to cryptocurrencies? Or is there some other dynamic at play here?

The Article Steve Hanke Linked To

This run-of-the-mill article doesn’t really say much. Its main message is the price action anyone reading NewsBTC is probably already familiar with.

“Ethereum, or ether for short, is also trading at record levels. It’s now hovering around $4,850, having soared more than 560% this year, compared to the “mere” 135% pop for bitcoin. Crypto investors are betting that ether will continue to be used as the backbone for even more non-fungible tokens, or NFTs, as well as so-called smart contracts.”

Ok, what else do you got for us? Not much. It’s all over the place. It breaks down the total cryptocurrency market capitalization, introduces the concept of the mythical “flippening,” and tries to keep people away from meme coins. To accomplish this, CNN quotes Paxfull’s Ray Youssef saying, “Ether and bitcoin versus meme coins are like the difference between blue chips and penny stocks you get a call about from a guy in a boiler room.” The article also talks about inflation, how could it not?, and introduces ETFs into the picture.

“The rise of bitcoin ETFs also could be good news for ethereum, because experts predict that similar ether ETFs could soon launch. That will make it even easier for average investors and big money management firms to buy into the crypto.”

So, all in all, it doesn’t say much and the only clear fact it presents is that Ethereum had a better year than Bitcoin. Why did Steve Hanke link to it, then?

ETHUSD price chart for 11/13/2021 - TradingView

ETH price chart for 11/13/2021 on Bitfinex | Source: ETH/USD on TradingView.com

Is Hanke Trying To Find A Lifeboat?

Here at NewsBTC, we constantly argue with Steve Hanke. Just in the last year, we responded to him calling Bitcoin not legitimate, not a currency, and the concept of it being legal tender “stupid.” And now, Hanke seems to like Ethereum. Why? Is it because Ethereum’s internal policies are more akin to the traditional banking system he’s accustomed to? Or did Hanke realize that cryptocurrencies are here to stay and is too afraid to admit he was wrong about Bitcoin for all these years?

In any case, the main reaction in his replies so far is mockery. Even notorious Ethereum defender Udi Wertheimer said, “this is the most bearish ethereum signal i’ve seen in my entire life.” Let’s keep an eye on Hanke’s Twitter feed and see what the economist says about Ethereum in the next few days. This is going to be interesting.

Featured Image: RobinHiggins at Pixabay | Charts by TradingView

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Comment ( 1 )

  • Betsy

    Cryptocurrency exchanges: Also called digital currency exchanges,
    these generally consist of online businesses that allow customers to exchange cryptocurrencies for fiat currencies or other cryptocurrencies.
    Because the dollar is the system of trade we are so used to and
    cling to daily, we tend to look at the value of other things of value in ‘dollars.’ The exciting
    thing about Bitcoin and cryptocurrency is that the value of Bitcoin versus the dollar in the long term will not matter as it has a value that is derived much differently than that of our limited fiat currencies.

    They had a 2021 year-end prediction of $66,284 but believed that by
    2025 it would reach $318,417, and those holding
    to 2030 will see over $4.2 million. However, Bloomberg did publish an April 2021
    report with an eye-popping 2021 End of Year Prediction of $400,
    000. Securities and Exchange Commission also issued a report and investors bulletin on initial coin offerings, or sales of new digital coins.
    Pankaj Balani, the CEO of Delta Exchange indicates his short term outlook after the COIN listing is a lot more
    optimistic than Novogratz’s opinion. The Polygon project
    is one of the more recent attempts at blockchain interoperability and scaling, and it aims to alleviate some of the apparent
    constraints of projects like Polkadot and Cosmos.

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