Nouriel Roubini Speaks Against Cryptocurrencies, Calls Them Bulls**t
Yesterday, Nouriel Roubini, American economist and chairman of Roubini Macro Associates LLC, spoke negatively about digital currencies in a panel at the Milken Institute Global Conference. Roubini stated that all this talk of decentralization is “just bulls**t.” The co-worker of CIA on cryptography said, “I don’t even know where to begin.”
Since judging the 2008 Financial Crisis, Roubini has become popular in financial circles as “Dr. Doom.” He continuously disregarded digital currencies as a practical due to its inability to store value. Moreover, virtual coins cannot be scaled against centrally intermediated payment systems.
CEO of crypto lending pool Celcius Network and member of the panel, Alex Mashinsky, claimed that crypto assets have the capability to free citizens from the grip of financial institutions and added, “You’re just making stuff up. Why don’t you buy one coin, then you can tell us how it works?”
US general counsel Treasury Department, Brent McIntosh, tried to calm down the situation suggesting, “I may need to step in and regulate this panel.”
Earlier, Roubini speculated that new regulation on digital currencies around the world would serve as the final nail in the coffin for the bitcoin bubble and other altcoins. He said, “I think that more and more countries will start to make cryptocurrency exchanges illegal like China did. New regulations will be adopted. So, this will find its end.”
However, many market experts do sand by Roubini’s thoughts. In April Tim Draper, an American venture capital investor and inspiration for many said that bitcoin would hit the mark of $250,000 by the year 2022. In the latest statement, Draper said, “I didn’t want to make any predictions after that for a long time because I wanted to let the dust settle. Yet last month I thought that it was time for another prediction while introducing my new book, How to Be the Startup Hero: A Guide and Textbook for Entrepreneurs and Aspiring Entrepreneurs.”
Digital currencies have not been able to catch up to its estimated position in the first quarter of 2018 yet crypto supporters believe it will surpass the $20,000 mark by the end of the year. Adena Friedman, CEO of Nasdaq, reminded investors about the positive future of virtual coins even after it’s underperformance in 2018. She said, “I believe that digital currencies will continue to persist…it’s just a matter of how long it will take for that space to mature.” Once you look at it and say, ‘do we want to provide a regulated market for this?’ Certainly, Nasdaq would consider it.”
On the other hand, there have been few countries that have eliminated or minimized the use of digital currencies in their financial framework. Their outlook has been changed by the number of heists that have occurred due to the weal security framework of crypto exchanges.
Eventually, it is a speculative market, and people will come up with many theories to support or attack digital coins just like in the case of traditional share market. An investor should consider all the facts before trading virtual coins as they can make or break you in a second.