The economist Nouriel Roubini “doomed” and admitted that Bitcoin may be a store of value. Roubini believes that due to the central bank’s launch of its own digital currency, a “great revolution” will occur in the next three years.
Nouriel Roubini sees Bitcoin’s store of value
After years of publicly mocking and mocking Bitcoin, Nouriel Roubini admitted that Bitcoin may be part of a store of value.
Roubini teaches at the Stern School of Business at New York University and owns his own economic consulting firm Roubini Macro Associates. He is known for predicting the collapse of the real estate bubble from 2007 to 2008, and his pessimistic predictions earned him a “Doctor. “Doom” in the media.
Dr. Doom has been a long-time critic of Bitcoin. At the Senate hearing in October 2018, he called cryptocurrency “the mother of all scams and bubbles.” He also said that the cryptocurrency world is a “smelly cesspool” and is fundamentally worthless.
However, Roubini may have changed his view of Bitcoin at least to some extent. In an interview with Yahoo Finance on Friday, he was asked what he thought of Bitcoin because it was just a bull market. After reiterating his position that it is not currency, Roubini said:
It may be a partial store of value, because unlike thousands of other currencies that I call shitcoins, it cannot be devalued so easily, because at least an algorithm exists to determine how much the supply of Bitcoin has increased over time.
As for other cryptocurrencies, Dr. Doom said: “In fact, most other cryptocurrencies are done temporarily, and they depreciate faster than the Federal Reserve.
Roubini also explained why he believes that “cryptocurrency is a misnomer.” For something considered currency, he described that it must be a unit of account, a single currency unit, scalable payment methods, and a stable store of value with little fluctuation.
He claimed that Bitcoin is not a unit of account because “Bitcoin or any other cryptocurrency has no pricing.” In addition, he said that this is not a molecule because there are many tokens and it is not a scalable payment method because you can only Make five transactions, and the Visa network can make 25,000 transactions per second.
As for the future of cryptocurrency as an asset class, he emphasized, “It is not scalable, it is insecure, it is not decentralized, [and] This is not currency. “
In addition, he explained that many central banks are studying central bank digital currency (CBDC). When they start, everyone can open an account with the central bank from which payments can be made. When this happened, he said: “Not only you don’t need encryption, you don’t even need Venmo. You don’t even need a bank account. You don’t even need a check.” Dr. Doom explained:
In the next three years, the major revolution we will see will be central bank digital currency. They will crowd out the digital payment system.
What do you think of Nouriel Roubini’s views? Let us know in the comments section below.
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