Steve Hanke, a professor of applied economics at Johns Hopkins University, criticized Bitcoin users for not knowing financial literacy in his post on Twitter.
Professor Steve Hanke, who once again targets Bitcoin users, stated that people with low financial literacy tend to turn to Bitcoin more.
Financial Literacy Level Is Effective In The Trend To Cryptocurrency
Professor Steve Hanke cited a study by the Bank of Canada as the basis for his criticism. According to the study, investors with low financial literacy are twice as likely to put their money in Bitcoin. In the research, this rate is determined as 4% for investors with a high level of financial literacy, and 8% for investors with a low level of financial literacy.
According to the research, while investors with advanced financial skills tend to be more conscious about Bitcoin, they generally prefer to stay away from Bitcoin, the flagship of cryptocurrencies.
“Crypto Money Encourages Gambling”
Research over the past decade has revealed that people who spend money on casinos, lotteries and sports betting have a lower level of financial literacy. In an article published by the American Institute for Economic Research (AIER), finance writer J.P. Koning said that viewing Bitcoin as a rebellion against the corrupt financial system would encourage more gambling.
Gamblers are likely to gamble more if the article says that they are not really betting gamblers, but that they helped topple the banking oligarchy and exchange bad fiat money. J.P. Koning attributes this to the low level of financial literacy.
Hanke Is Inconsistent About Cryptocurrency
Claiming that there are always people willing to be fooled and that crypto currencies are fooling people, Hanke also got involved in a stablecoin project in 2018. In a Twitter post he made a few months ago, Hanke claimed that Bitcoin should be linked to gold, signaling that he lacks a basic understanding of how cryptocurrency actually works.