Nouriel Roubini Explains Why “Bitcoin’s Bubble Is Going To Go Bust”
Never a dull moment with famed economist and known perma bear Nouriel Roubini. The economist who called the 2007-2008 financial crisis before it happened still has a large swath of fans and is therefore always listened to on whatever economic subject he wishes to discuss.
Yahoo Finance had him on and clearly hoped that he had changed his mind on Bitcoin.
However, as he had posted a message on Christmas Eve with regards to the SEC lawsuit of XRP, it did not bode well.
At that time already, he had said:
XRP down 55% in less than a week. Wait for the bloodbath of other Shitcoins, starting with Bitcoin, as law enforcement & regulators finally start cracking down on this infinite cesspool of crappy shitcoins!
In fact, last time we heard of him on CryptoTips speak about the invention of Satoshi Nakamoto was back in May when a group of Whales all decided to sell their Bitcoin at the same time which caused a flash crash.
Roubini used the flash crash phenomenon to prove his point that the best known digital currency is manipulated. When it happened again in August he repeated his theory.
XRP down 55% in less than a week. Wait for the bloodbath of other Shitcoins, starting with Bitcoin, as law enforcement & regulators finally start cracking down on this infinite cesspool of crappy shitcoins!— Nouriel Roubini (@Nouriel) December 24, 2020
XRP Plummets After SEC Lawsuit https://t.co/USUgzRs0AQ via @coindesk
Of course right now we are way past that point and Bitcoin is trading over $28,000. Has he changed his mind since?
Well not really we guess, as Nouriel Roubini said in response to Yahoo opening question:
First of all, calling it a currency — it’s not a currency. It’s not a unit of account, it’s not a means of payment.…it’s not a stable store of value. Secondly, it’s not even an asset. In the case of Bitcoin, there is no income.
There is no use. There is no utility. The only thing is a speculative, self-fulfilling kind of rise, and that rise is driven totally by manipulation.
Professor Roubini continued by slamming Tether, the stablecoin which he believes is being used to manipulate the price of Bitcoin.
He thinks that an upcoming investigation of Tether will eventually crash Bitcoin.
And 2 weeks later, the NYAG investigation/lawsuit against Tether was revealed for the first time. https://t.co/uvsjb0FUOP— crasl (@crasl7) December 23, 2020
The price of Bitcoin is totally manipulated by a bunch of people, by a bunch of whales. It doesn’t have any fundamental value.
We’re close to the point where the hyperbolic bubble is going to go bust.
In essence the Professor of economics at NYU’s Stern School of Business is still not fan. We’ll let you know when he speaks again on Bitcoin as it is always good to read opposing views as well.
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