Nouriel Roubini, better known as ‘Dr. Doom’ Roubini said that Bitcoin will not survive regulations. Mr. Roubini is a professor at Stern School at the New York University.
“Bitcoin Will Find its End”
Mr. Roubini, who correctly predicted the 2008 financial crisis, does not believe that Bitcoin will succeed.
“In my opinion, there is a gigantic speculative bubble related to the Bitcoin because this is neither a serious method of payment nor a good way to store capital,” he told Business Insider. Some time ago, Robert Shiller wrote a book about bubbles where he expresses that Bitcoin is “the best example (of it) right now.”
Roubini and Dimon, are They Best Friends?
Mr. Roubini did not only talk about Bitcoin but about Blockchain and cryptocurrencies.
“First of all, I would separate the blockchain from the Bitcoin. Blockchain creates an enormous chance to increase productivity in many companies and I think the technology to be something very good. But the Bitcoin and other cryptocurrencies – this is something entirely different. In my opinion there is a gigantic speculative bubble related to the Bitcoin,” he answered to a question regarding Blockchain and Cryptocurrencies.
Mr. Roubini seems to have a similar view as Jamie Dimon, JP Moran Chase Chief Executive Officer. The banker has commented about Bitcoin in negative ways, several times.
“If the government says that the currency is illegal and that it is against the law, if you use it again we put you in jail. Governments will crash Bitcoin one day,” Dimon has said. But he has also given his thoughts about Blockchain technology. About this, he believes that this new technology could make the banking business more efficient and fair.
In the same way, Nouriel Roubini expresses his opinions. He believes that Bitcoin will not be able to survive government regulations and that it will ultimately collapse. In addition to it, he does not believe that Bitcoin has any intrinsic value, it is not a good storage of value either.
“This is neither a serious method of payment nor a good way to store capital. The Bitcoin feeds on itself. There are no fundamental reasons for its price to reach such levels. What is more, it is also used by criminals, for their shady business,” he stated. “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,” he finished.
There are Also Good Comments About Bitcoin
Mike Novogratz, fund manager at FIG (Fortress Investment Group), answered to Dimon and defended Bitcoin. He has said that Dimon, as a banker, needs to defend its industry and criticize Bitcoin and the whole cryptocurrency market.
Bill Miller, chairman of Miller Value Partners LLC, has invested his hedge fund holds in Bitcoin. “Bitcoin is a true disruptor and true innovation in money,” he has said about the famous cryptocurrency.
Image courtesy of Business Insider
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