Nouriel Roubini: Bitcoin’s ‘Hyperbolic Bubble Is Going To Go Bust’
Famed Keynesian Economist Nouriel Roubini has again hit out at Bitcoin, saying the price is a hyperbolic bubble, manipulated by criminals that’s about to burst.
The NYU Stern School of Business economics professor has never had a good word to say about Bitcoin and seems to be getting angrier as the Bitcoin price reaches regular new all time highs.
Roubini, known as Doctor Doom by in the Bitcoin space, was speaking on Yahoo Finance and got quickly irate when asked about Bitcoin, claiming the Bitcoin price was being ‘manipulated by whales and criminals’.
Indignant Nouriel Roubini claimed Bitcoin isn’t a currency or a store of value and it can’t even be considered an asset, even though it has a market cap of over $0.5 trillion.
‘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,” said the heated Roubini, adding, ‘It’s not a stable store of value. Secondly, it’s not even an asset.’
According to Doctor Doom, Bitcoin has no intrinsic value, as it doesn’t provide yield like bonds, stocks, real estate.
‘While in the case of Bitcoin, there is no income,’ said Nouriel Roubini. ‘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.’
Obviously Nourriel Roubini isn’t taking notice of what is being built on Bitcoin. Hmm, I wonder why… Would it affect his cognitive dissonance?
Doctor Doom: The Bitcoin Price Is A Hyperbolic Bubble, Manipulated By Tether That’s About To Pop
Despite the rise in Bitcoin’s price and institutional investment from MicroStrategy, MassMutual, PayPal, Guggenheim and investing legends such as Paul Tudor Jones and Stanley Druckenmiller, Roubini claims the Bitcoin price is being manipulated by Tether.
Doctor Doom claims Tether print value to boost the price of Bitcoin and claims they are about to be indicted by the US government, which will ultimately crash the Bitcoin price.
‘The rise is driven totally by manipulation. There has been academic study suggesting these pseudo stablecoin Tether is being created by fiat,’ says Doctor Doom.
‘Every time the price of Bitcoin goes down, overnight they issue more of this Tether that is literally to manipulate the price of Bitcoin. So the price of Bitcoin is totally manipulated by a bunch of people, by a bunch of whales and it doesn’t have any fundamental value.’
Roubini then reference the cycle peak in December 2017 when Bitcoin almost reached $20k before crashing to just over $3,800 a year later, saying Bitcoin’s ‘hyperbolic bubble was about to go bust’.
‘I think we are close to the point which this hyperbolic bubble is going to go bust. And it’s going to go bust because law enforcement authorities are having an investigation of Tether and the company behind it,’ said the highly animated Nouriel.
‘That’s a totally manipulated market that’s not being driven by fundamentals. It’s driven by insiders, by criminals, by whales, by scammers. That’s the reality and there is evidence on it, and that’s why there is a criminal investigations that are going to reach their climax in the next few months.’
What Isn’t Nouriel Roubini Seeing That Others Clearly Are?
Nouriel Roubini is a famed Keynesian economist, who has doctorate in international economics from Harvard University. He has worked with Yale, the International Monetary Fund (IMF), the Federal Reserve, World Bank, and Bank of Israel, and now lectures at NYU Stern School of Business.
Clearly Doctor Doom understands Keynesian economics, which begets his ignorance to anything else.
Added that he simply doesn’t get the digital existence of value on a network that isn’t controlled by central planners, and he his picking up every scam associated with Bitcoin to feed his cognitive dissonance.
Bitcoin has made huge gains in the last six months of 2020, from $10,000 in June to an all-time high of over $28,000 on 27 December.
While Nouriel Roubini claims Bitcoin has no place in retail or institutional investors’ portfolios, the reality is that the 2020 bull run is driven by institutions.
Nouriel Roubini is a smart man who influences many, but his anger and hatred towards Bitcoin is going to discredit his brand.
The smart money is already waking up to Bitcoin. Nouriel is asleep at the wheel, but it’s those he influences I fear for.
Author: Tommy Limpitlaw
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Bitcoin is a peer-to-peer money that nobody can manipulate. It’s all set in the Bitcoin codebase which is secured by hundreds of thousands of computers all around the world. Bitcoins can be sent by anybody and no third party is need to verify the transactions, and nobody can stop Bitcoins being sent.
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