Bitcoin continues to decline after a major collapse in the crypto market. The latest price drop means analysts remain divided over whether the problem is existential or simply an oversight on the road to more records. Indeed, despite the recent fall, the rise of Bitcoin in recent months has always been positive. But that doesn’t make legendary economist Burton Malkiel’s warning about the future of cryptocurrency any less relevant.

Writing in the latest edition of his iconic book ‘A Random Walk Down Wall Street’, Mr Malkiel explains how disastrous it could be if Bitcoin’s underlying crypto system were hacked.

He notes, “There wouldn’t be time to update the system protocol in order to protect everyone’s money. “

Mr Malkiel also claims that Bitcoin token holders “often reside in countries with weak legal rules” and “tenuous property rights”, while noting that the cryptocurrency could be viewed favorably in North Korea.

Several economists have already argued that the growth of Bitcoin has been referred to as a “money laundering index”.

However, Mr Malkiel appears to see the writing on the wall as he explains how the legislation could burst the bubble.

He writes: “Governments can be expected to crack down on the use of Bitcoin and other cryptocurrencies for illegal transactions.

“Governments can threaten to jail individuals using Bitcoin, which could force them into a black market.

“In 1933, US President Franklin D Roosevelt banned Americans from holding gold.

“All governments have rightly been very demanding of their exclusive right to issue and control currencies.”

READ MORE: Bitcoin Boost As Expert Warns ‘Lower Lower, Higher Bounce’

The latest Bitcoin crisis has also sparked a division among financial commentators.

Fawad Razaqzada, market analyst at ThinkMarkets, said last week that a sharp drop is often followed by a surge.

He said, “The bigger the drop, the higher the rebound. “

However, he added that the ascending and descending nature of crypto will remain, which means that Bitcoin will continue to be an unpredictable asset.

Mr Razaqzada said: “But it remains to be seen whether the recovery will hold up.

“Cryptos are likely to remain volatile for some time as speculators weigh the impact of China’s ban and Tesla’s turnaround against recent growth in institutional interest.”

JPMorgan also warned in a report last week that institutional investors are moving away from Bitcoin in favor of gold.

The US investment bank added: “The Bitcoin flow situation continues to deteriorate and suggests a further downturn in institutional investors.

“Over the past month, the Bitcoin futures markets have experienced their steepest and most sustained sell-off since Bitcoin’s ascent began last October.” does not provide financial advice. The journalists who worked on this article do not own any Bitcoin.

Burton Malkiel’s “A Random Walk Down Wall Street” was published by WW Norton & Company Inc. It is available here.

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