According to some Harvard economics professors, Bitcoin will ultimately be destroyed by the weight of government regulation. Professor Kenneth S. Rogoff believes that the risk of financial anonymity will eventually create an environment where regulation would crush Bitcoin. He said:
“Small anonymous transactions with virtual currencies … would be desirable but large-scale anonymous payments would make it extremely difficult to collect taxes or fight criminal activities.”
The perspective is shared, though in a different vein, by his counterpart, Jeffrey A. Miron, whose libertarian perspective makes him more weary. Nevertheless, he believes that central governments will eventually drive technology out of existence. He said:
“It [the government] could let crypto-currencies exist peacefully, and not accept them as a means of payment, and that’s what I think it should do, but I think sooner or later governments will regulate cryptocurrencies. ”
The potential for government regulation is certainly real, as many countries have limited access or exchange of Bitcoin and other cryptocurrencies. China banned ICOs (initial coin offerings) and restricted access to Bitcoin trade.