Roubini’s hate for Bitcoin

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Nouriel Roubini is one of the earliest financial experts. He predicted the 2008 financial crisis. He has very precisely predicted the economic ‘doom’ of the last decade. Roubini, a professor at New York University is mockingly known .as “Dr. Doom”. We know that economy fluctuates highly. It witnesses ‘boon’ and ‘doom’ periods. When the economy is flourishing it is a ‘boon’ and when it is slowing down it is a ‘doom’.

American economist Roubini becomes popular in media when his 2006 prediction becomes true. That year his prediction was on alarming US credit and housing crisis. He said this during his address at

IMF. He also said that it may affect the global economy. In early 2018 his prediction of the financial crisis becomes a reality. Since that year, we are experiencing an economic slowdown throughout the world.

Roubini’s comment on Bitcoin

He is in news recently for his remark on Bitcoin. According to him, this cryptocurrency is the number one manipulated asset to date. Bitcoin is suitable neither for institutional portfolios nor for retail investor’s portfolios. The value of the virtual currency is volatile. For him, it is not at all a currency. He renounces it as an accounting unit. There is no asset backing for this so-called currency. It is yet to become legal tender. You can’t use it to pay your tax. He supplements his opinion by citing Bitfinex investigation by US authority.

Crypto enthusiasts are rejoicing Bitcoin becoming the most valuable asset of 2020. It has left gold and silver behind it. But Roubini rejects the claim of Bitcoin as an asset. He further says that digital currency is not a scalable way of payments. He even blames Cryptocurrency as unsustainable. It uses a huge quantity of energy. It is polluting our environment in many ways.

Speculation is an inherent feature of Bitcoin. There is no dependable indicator to judge the Bitcoin movement. The price may skyrocket today and fall to the floor the next day. Manipulation is a regular phenomenon with it. Investing in it is worse than gambling. Nobody knows how it would behave in the future.

No government or central authority is behind it. Amongst a lot of hype, there are a bunch of scams. Many illegal outfits are using Bitcoin for drug trafficking. He also blames Cryptocurrency exchanges. The liquidity of crypto exchanges is false and artificial. The exchanges manipulate data in their favor.

Conclusion

We can’t ignore Nouriel Roubini’s prediction. We know that it is too early to make any concluding remark on Bitcoin. But the points raised by him are very important. Since the launching of Bitcoin, it has been swinging up and down. In one way the popularity and acceptance of Bitcoin are increasing. Many large companies and banking institutions are embracing Cryptocurrency. Bitcoin has also been in the news for scams, fraudulent use, and illegal activities. So if you are into the Cryptocurrency world then be cautious. You need to understand it before putting your money in it.

Source: https://coinmercury.com/roubinis-hate-for-bitcoin/

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