Weeks ago, some still thought that Nouriel „Dr Doom“ Roubini had changed his tone about Bitcoin.
After the 2008 recession predictor had been berating the crypto-currency for years, Roubini said in an interview with Yahoo Finance that he considered BTC a „partial“ store of value.
The economist and NYU professor explained in Bitcoin Freedom the interview that Bitcoin was able to store a certain value because of the „algorithm“ that manages the offer and points to halving. He added that Bitcoin is far superior to Altcoins – and even joked that Altcoins have worse inflation rates than Fiat money.
Sounds like @nouriel is changing his tune.@JuliaLaRoche got him to disclose today that he now thinks Bitcoin is a store of value. (starts ~2 min mark)
They all eventually capitulate. pic.twitter.com/Wl73LDybnO
– Pomp 🌪 (@APompliano) November 6, 2020
Many saw this as a sign that he might open up to Bitcoin.
However, this is not true, as can now be read in a 12-part Twitter thread from 26 November.
Roubini tries to destroy Bitcoin
Roubini tries to destroy Bitcoin in this multipart thread. He writes that the coin plays „no role in the portfolios of institutional or private investors“ because in his eyes it has no intrinsic value, is heavily manipulated and shows extreme volatility:
„Bitcoin has no role in the portfolios of institutional or private investors. It is not a currency: not a unit of account, not a scalable means of payment & is an extremely volatile store of value. It is heavily manipulated: look at the investigation of Bitfinex by US legislation“.
Bitcoin has no role in institutional or retail investors portfolios. It is not a currency: not a unit of account, not a scalable means of payment & is a highly volatile store of value. It is heavily manipulated: look at the investigation of Bitfinex by US law enforcement. 1/n
– Nouriel Roubini (@Nouriel) November 26, 2020
It states that Bitcoin has no value because it does not bring any benefit and does not generate any income/dividend like other assets.
According to Roubini, investing in Bitcoin is therefore the same as putting money into a rigged casino.
This seems to be based on Roubini’s belief that there is strong manipulation through spoofing and wash trading, which means that the opportunities are targeted in favour of market makers and whales – unlike normal investors.
Not the only critic
Bitcoin is also criticised by other prominent market commentators.
Asset manager and market analyst Ben Hunt still believes that BTC is in theory a brilliant idea and a brilliant concept. But he has also recently said that Bitcoin „is now just another game at the Wall Street Casino“:
„Specifically, Wall Street has decided that Bitcoin is an inflation hedge ™. This is your casino section from now on. That is all you will be allowed to do, and all laws will follow. You can make too much money to let your crazy ideas screw up a good thing.“
While Bitcoiners argue that this is not true. But Hunt reacts to that too.
He points to the news that the US may require all users who want to use Bitcoin on their own to prove that they have the address where they make their transactions.
This would create a system where every transaction is flagged and tracked by the government – which could potentially deal a serious blow to the technology’s lack of trust and resistance to censorship.