Nouriel Roubini has been a longtime skeptic of digital instruments, and now he is also skeptical of the cryptocurrency sector.
Nouriel Roubini, the economist who predicted the 2008 international crisis that earned him the nickname “Dr. Doom” (Doctor Catastrophe), gave Bitcoin a thumbs down as an investment alternative.
Roubini has long been skeptical of digital instruments, and now he is also skeptical of the cryptocurrency sector.
He discards the idea that cryptocurrencies represent a new form of currency, arguing that they do not meet four criteria: serving as a unit of account, a means of payment, a stable store of value, and acting as a single numeraire, or point of reference to compare the value of similar financial instruments, collects MarketWatch.
“Even the Flintstones had a more sophisticated system of using shells as a single numeraire to compare the price of different products,” jokes “Dr. Doom”.
For this expert, the sharp increase in the price of cryptocurrencies in recent years has the stamp of a market bubble, and they do not fit the definition of any type of financial asset.
“A bubble occurs when the price of something is well above its fundamental value. But we cannot even determine the fundamental value of these cryptocurrencies and yet their prices have skyrocketed. In that sense, this looks like a bubble to me, ”he said.
The cryptocurrency sector is experiencing strong volatility these weeks. Last weekend, Bitcoin lost 50% of its value from its all-time high above $60,000 earlier this year.
In recent days it has regained some of its value, but it still does not seem to have finished finding a foothold from which to take off again. The $40,000 was shaping up to be a stable price, but now it’s falling again.
The causes that hit cryptocurrencies were the red light that China lit against that market and Tesla’s decision, reported by Elon Musk, not to accept Bitcoin as a means of payment for the environmental impact that “mining” implies.