With the current happenings in the Cryptocurrency market, it has given the popular Bitcoin skeptic and economist; Dr. Nouriel Roubini more power to attack the coin.
Sometimes, he is also addressed as Dr. Doom as a result of his constant pessimistic views about some of the Cryptocurrencies. He granted an interview to talk about his views about the ongoing downturn of the coins.
According to him, the overall Cryptocurrency space is just one of many assets that are not real cash.
He had so many things to say to back up his viewpoint. Dr. Roubini’s bashed digital currencies totally by saying that they cannot be classified as currencies or viable means of exchange and neither can they be an adequate store of worth.
In addition to all these, he went on to call Bitcoin, the father, and mother of all bubbles. This is as a result of the fact that the coin crashed from the sum of $20000 down to a mere $2000.
However, there are people of differing opinions because of the supply capitalization of Bitcoin and the upcoming lightning network.
For Roubini, the mere fact that people are seeking his counsel on the virtual currency shows that they do not care about the difference between bonds, stocks, and any other type of market.
And, since these people are not interested in either interest rates or basics of credit; then it is a sign that something is not right.
His final remark during the interview is that Cryptocurrency investments are similar to over trading on something that is not real or even gambling.
Roubini’s Stance On The Waving Market
During the same interview, Roubini talked on a fact that through some approaches, the legacy market could be entering a dangerous zone.
As an economist, he pointed out that a universal recession is bound to occur. Plus, the condition of the recent macroeconomy should be considered as average. He is of the opinion that the world would likely get to a stage of integrated slowdown.
Meanwhile, he did not fail to mention that nations in the European Union may begin to lean towards a source that is weaker than their current level of prospective economic growth.
Roubini touched on the fact that European zones have experienced the Brexit incident, Yellow vest movement, and every other brouhaha in the society. In the interview, he mentioned that a load of debt issues is present in corporate society.
He also noted that the debt could only be manageably justified if the economy keeps rising at a balanced rate. Moreover, if eventually there is a slowdown, the different stages of corporate debt would only lead to dangerous territory.
To Wrap It Up
Some people are of the belief that these debts could actually be ideal for some Cryptocurrencies such as Bitcoin. But, Travis Kling; chief investment officer of Ikigai goes on to explain further that Bitcoin is the best hedge against unreasonable financial practices.