Nouriel Roubini Slams Bitcoin After Initially Calling It a Partial Store of Value

Spread the love
Nouriel Roubini: Central Bank Digital Currencies will Destroy Cryptocurrencies and Blockchain Technology

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.

RECOMMENDED READ:  Facebook Forecast muscles in on prediction markets

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”.

RECOMMENDED READ:  "Shark Tank" Judge Kevin O'Leary Is Concerned About BTC's Price Swings

His outspoken animosity towards cryptocurrencies has gained him the moniker “Dr. Doom”. However, a report by 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.”

 226 Interactions,  4 today

Bitcoin rises slightly over $51K as dollar weakens

BItcoin rallyes over $51,000 as the dollar stagnates, displaying signs of a short-term peak. The U.S. dollar index (DXY) reveals Read more

What Is Tron and its cryptocurrency Tronix?

Tron is a blockchain-based, open network that seeks to create a secure, global digital information entertainment infrastructure using distributed storage Read more

Cardano, NEM, Sushiswap Price Movement Analysis for 3rd March, 2021

While the on-chain metrics for Cardano, NEM, and SUSHI pointed to a short-term pullback, the fate of the altcoins rested Read more

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact Us