"Dr. Doom" Roubini: Bitcoin is a bubble, primitive people's monetary system is better than it

Source: FX168, author: Bingsike

Even though Bitcoin has broken through the $50,000 threshold, Nouriel Roubini, a well-known American economist known as "Dr. Doom," has not changed his earlier stance on Bitcoin. He posted on Twitter criticizing Bitcoin as a mistake and a bubble, and even said that Bitcoin cannot be considered a currency at all, and that even the primitive people's monetary system is better than it.

(Source: Twitter)

Roubini first wrote that the digitization of currency is a return to barter, because there is no unified number, which makes it impossible to compare the relative prices of different goods or services if each commodity requires a different cryptocurrency. In an interview with Bloomberg Surveillance, he also emphasized that the emergence of "assistance plans" in the market helped Bitcoin rise, but cryptocurrencies will never be used as a means of payment for goods and services.

If you look at Ruby's Twitter, you can find that he pinned a Twitter post on February 10, which quoted his interview with the Financial Times. The post said: "Bitcoin is not a hedge against risks. Tesla founder Elon Musk may be buying Bitcoin, but that doesn't mean everyone else should follow suit. Given its huge environmental cost, the fundamental value of Bitcoin is negative."

(Source: Twitter)

Roubini even pointed out that Bitcoin mining consumes a lot of electricity resources and causes great harm to the global environment. He previously explained that it is wrong to call Bitcoin a currency. It is not a currency, not a unit of account, not a payment method, and not a stable value storage. Secondly, he can't even say it is an asset. He added: "Bitcoin has no intrinsic value. Assets like bonds, stocks, real estate or precious metals can provide investors with income, capital gains or some form of utility. But in the case of Bitcoin, investors cannot get income. This is a useless program. The only thing is that it is speculative and a self-fulfilling promotion, and this promotion is completely driven by manipulation."

Regarding the fact that Bitcoin has gained favor among some investors in recent years, Roubini further emphasized that academic research shows that Bitcoin, a pseudo-stable coin tether, is created by fiat and is actually used to manipulate the price of Bitcoin. He said: "The price of Bitcoin is completely manipulated by a group of people like whales. It has no fundamental value. We are close to the moment when the hyperbolic bubble bursts."

As of 13:48 Hong Kong time before press time, the price of Bitcoin rose by 5.35% to US$52,204.61.

JPMorgan Chase also warned that as cryptocurrencies continue to rise, there are risks in the future. In its latest report, JPMorgan Chase pointed out that unless the price volatility of cryptocurrencies cools down quickly, it is an unsustainable trend to continue to push the price of Bitcoin above $50,000. Analysts also emphasized that it is currently more affected by speculative capital flows.

But the market obviously has a different view. Anthony Pompliano, co-founder and partner of Morgan Creek Digital Assets, said that by the end of this decade, the price of Bitcoin could reach $500,000. He said on the CNBC program in the United States that he believes Bitcoin will eventually become a global reserve currency and its final market value may surpass gold.

Pompliano continued: “With trillions of dollars being pumped into the economy, everyone from individuals to financial institutions are looking for the best way to protect their assets, and I think they will ultimately choose Bitcoin. Bitcoin will become the kingdom of the global reserve currency in the Internet age.”