Vanguard chief economist Joseph Davis sees a “decent probability” that bitcoin price could fall to zero.

In an ETF Industry Perspective published on etf.com, Davis shared his views on bitcoin and other cryptocurrencies – their price volatility, their function as “currency”, their role as an investment vehicle, and more.

Davis was highly bullish on the underlying blockchain technology and believes that the technology will be “adopted by governments and enterprises for specific purposes in the coming decades.”

However, regarding bitcoin, he said:

“As for bitcoin the currency? I see a decent probability that its price goes to zero.”

“Even if cryptocurrencies qualify for niche purposes, their prospects seem dubious.”

Furthermore, with a number of central banks, including the Bank of England, the Bank of Canada, and Norges Bank, and others, have started to explore the possibility central bank digital currencies (CBDCs), Davis went on to ask a very relevant question:

“If the choice were between bitcoin or a blockchain-based dollar, which would you rather have in your digital wallet?”

Bitcoin price surged to near $20,000 levels in December 2017 before falling to $6,000 levels in February this year. BTC/USD is currently trading at 8314 levels at the time of writing (Bitstamp).