Bitcoin API example

Last December, Boston University School of Management professor Mark T. Williams issued a prediction that drew rapt attention from the mainstream media, as well as the united ire of the bitcoin industry, when he boldly projected that the price of bitcoin would lose 99% of its value and fall below $10 by the end of June 2014.

However, at press time, the price of bitcoin on CoinDesk’s USD Bitcoin Price Index remains well above this figure, rising 34% in May to pass the US$600 mark. But, if Williams was hoping the community would forget his prediction, he was proven false this week when a number of leaders in the bitcoin space began to call for Williams to comment on what they feel is the inaccuracy of his prior remarks.

For example, published an extensive piece dedicated to analyzing Williams’ past statements on bitcoin, while VC investor Erik Voorhees took to Twitter to question whether Williams would face his critics now that his projections haven’t come to fruition.

Mark T. Williams, professor of finance at Boston, was wrong about Bitcoin. I wonder if he’ll acknowledge his error?

— Erik Voorhees (@ErikVoorhees)

Williams remains defiant

In a new interview with CoinDesk, Williams opened up about his famous prediction, offering a defiant analysis of why he is still convinced the current high price of bitcoin won’t remain for long.

Williams told CoinDesk:

“I continue to stick to my 2013 prediction that bitcoin is grossly overpriced and the price will eventually adjust dramatically downward as the priced-for-perfection expectations set by bitcoin promoters cannot be met.”

Williams suggested that while “asset bubbles cannot be easily timed”, the dramatic swings in price displayed by bitcoin provide evidence that consumers should be weary of making digital currency investments.

He added: “Will this bubble be completely deflated in the next six months to a year? Time will tell. In January 2013 it was worth only $13. If the question is, ‘Do I still see bitcoin dropping to these much lower levels in the future?’ The answer is yes.”

History will decide

Responding to the veracity of his prediction, Williams stated that he believes his projection, that bitcoin would decline in value by as much as 99%, has perhaps been more accurate than those in the digital currency community concede.