The Great Boston University Cryptocurrency Debate

Two of my Brilliant Economics Department Colleagues Go Head to Head on this Huge Issue

Photo by Behnam Norouzi on Unsplash

Economics Matters — Blog/Podcast/Financial Riddler/MaxiFi Puzzler

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Bootstrap University

Let me gush for a moment about Boston University’s Economics Department. When I joined in 1984, the Department was ranked 86th. Twelve years later, it was ranked 7th. It has remained one of the world’s leading economics departments ever since. But the department’s progress was just part of BU’s spectacular leap forward over the past four decades.

It’s not easy for departments, let alone universities, to move up in the rankings. Academia is one of the most competitive industries around. But great leadership and team effort, including support from BU’s outstanding alums, is why I call BU Bootstrap University.

Economics Matters — the Podcast has previously featured two of BU’s fab faculty. This podcast with BU Physics Professor, Larry Sulak, is an absolute must watch. Larry conveys the pure joy of scientific discovery. This is not Bill Nye the Science Guy. This is an honest-to-God scientist who has made fundamental contributions to major discoveries in particle physics, including the Higgs Boson.

And this amazing podcast, as well as this one, with BU Emeritus Professor, Robert Pinsky, show why he was named Poet Laureate of the United States not once, not twice, but three times. Robert and Joy Harjo are the only two poets to have earned that distinction.

Cryptocurrency

I’ve written about cryptocurrency. As you can read, I think virtual monies are dominated assets. I’d sooner play the lottery than invest in any of these 20,000 “assets.” This is one of two views set forth in The Great Boston University Cryptocurrency Debate. I call it Great because I think the debaters and the debate itself are great. The other view is that crypto represents a financial transformation that is of immense value especially to people in developing countries.

The Debaters

The verbal combatants here are Professor Tarek Hassan and Professor David Lagakos — two truly impressive macroeconomists. The moderator is another of my colleagues, the equally brilliant Martin Fiszbein.

Tarek’s research focuses on international finance, macro-finance, and social factors in economic growth. David’s research focuses on macroeconomics and development economics. Please click on their links and read their bios. Economists, it’s said, are people that are good with numbers, but don’t have the personalities to be actuaries. As you’ll see, Tarek, David, and Martin are major exceptions to this rule.

Tarek’s view is close to mine — the farther you stay away from crypto the better. David sees the major benefits that crypto is providing to people in the developing world in effecting transactions, including receiving remittances, at low- or no-cost. If you’re living in Venezuela, where inflation is running close to 500%, crypto, with all its risks, can represent a godsend.

Please click here to access this exciting debate.

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