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Dr. Nouriel Roubini, a notorious Bitcoin critic, and economic analyst has yet again cautioned institutions and retailers against investing in the digital currency. He cited the recent drop in the price of the coin and the fact that it is too volatile to be useful as a store of value. However, this statement appears contradictory to what he initially said about Bitcoin earlier this month.
Nouriel Says Bitcoin has no Store of Value
The NYU professor had claimed that Bitcoin has no intrinsic value since it is not backed by any asset. He added that the cryptocurrency is not legal tender nor can it be used as a means of paying taxes.
“It is a pure speculative manipulated asset and a bubble with no fundamental value.”
According to Roubini, Bitcoin tends to fall every time there is a drop in value in the stocks. For example, when the United States stock market fell by over 35% this year, Bitcoin also dropped by over 50% in the same period.
He likened investing in Bitcoin to gambling in an illegal and rigged casino, stating that the odds are stacked against retail investors since exchanges are heavily manipulated by “Tether & whales” in order to make money off of them.
He gave the example of two exchanges, Bitfinex and BitMex, which were being investigated by the US authorities. The NYU professor also cited scholarly work in the field of cryptocurrency that proves that Tether is being used to manipulate Bitcoin’s price.
He strongly advised retail investors to steer clear of Bitcoin as it could lead to the loss of wealth and savings.
Is Nouriel Backtracking?
Most people who are engaged in the crypto industry are aware that this isn’t the first time Roubini had opened fire on Bitcoin. In fact, he had previously called the digital currency “the mother and father of all bubbles” and had voiced out that blockchain is “no better than an Excel spreadsheet”.
His outspoken animosity towards cryptocurrencies has gained him the moniker “Dr. Doom”. However, a report by Bitcoin.com earlier this month claimed that the Doctor had admitted that Bitcoin might be more than the “bubble” he originally thought it all was.
The report claimed that Nouriel insisted that Bitcoin is not a currency but it may be a partial store of value. He also stated that he agreed that the crypto asset cannot be easily debased because of the presence of an algorithm that determines “how much the supply of bitcoin raises over time.”