A Chinese economist and deputy director at Renmin University’s International Monetary Institute, Qu Qiang, predicted that “we will all die” if Bitcoin becomes widely used as a currency. He foresees that our society will be caught in a “death spiral of deflation” and notes that “the whole of society will shrink and explode itself”.
We will all die if Bitcoin is widespread, predicts the Chinese economist
A deputy director at Renmin University’s International Monetary Institute, Qu Qiang, was interviewed about bitcoin on CGTN. CGTN is owned by the Chinese state-owned media China Central Television (CCTV). The video of his interview was shared on Twitter on Thursday by Hailey Lennon, who said she went to her hotel room and it was played on TV.
Qu was asked, “Can you give me the worst possible scenario of what kind of systemic shock it will mean to the current financial system if Bitcoin is widespread in China or the rest of the world?” He answered:
I can tell you exactly what’s going to happen … We’re all going to die. That’s no joke.
His answer was what he called “the worst or must-do scenario” that will occur when Bitcoin is “the ultimate kind of currency” and “adopted by all human society”.
Qu pointed out that “Bitcoin has a very, very strict, capped total number, which means it is a deflationary currency,” noting that it will not increase the amount as human development grows.
As a result, he claimed that with the introduction of Bitcoin, our society would be drawn into a “death spiral of deflation”. He stated, “The whole of society will shrink and explode itself. This happened at the end of the Ming Dynasty when they were short of silver. “
Qu graduated from Renmin University of China with a PhD in economics, where he is now a professor and PhD supervisor. He currently works as an external supervisor for the Bank of Beijing and the Industrial and Commercial Bank of China (ICBC). Among his numerous positions, he is director of the China Financial Policy Research Center, a key research center for the humanities and social sciences of the Chinese Ministry of Education.
Bitcoiners had a great day over Qu’s comments on social media. Many just laughed excessively, some called the whole thing an “ultimate FUD” and “state-sanctioned bullshit propaganda”.
Some debunked his theory of silver. One person tweeted, “The Ming Dynasty collapsed for many reasons, but a deflationary silver spiral is not one of them,” citing work by Richard von Glahn who wrote, “This hypothesis is based on dubious theoretical and empirical reasons.”
Many ridiculed his knowledge of the fall of the Ming Dynasty. One person suggested, “This could easily be an SNL [Saturday Night Live] Sketch except funnier. “Another exclaimed:” End of the world. Be careful. ” A third person said, “I didn’t know Bitcoin was ending the Ming Dynasty.” A fourth person intervened: “Imagine you got into trouble since the 15th century.”
One user got more serious and stated, “For the record, he [Qu] has no idea about the Ming Dynasty. “Quoting the British Museum’s world history, he wrote,” The state of Ming … however, over-issued paper money, which led to hyperinflation. By 1425, paper money was worth only one seventieth of its original value, and the use of paper money in China ceased. “
What do you think of Qu’s comments on Bitcoin? Let us know in the comments below.
Photo credit: Shutterstock, Pixabay, Wiki Commons