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REUTERS / Fred Prouser
- Nouriel Roubini, known as “Dr. Doom” for his bearish views, criticized Bitcoin for being heavily manipulated and blamed retail investor FOMO for this week’s boom and bust on Thursday.
- Roubini tweeted the digital token has no role to play in the portfolios of retail or institutional investors because it has no intrinsic value.
- “Retail suckers with massive FOMO jumped into BTC again like they did at the end of 2017, when the price went from 10K to 19K to drop to 3K in 2019,” he said. .
- According to him, investing in Bitcoin is like playing in a rigged casino.
- Visit the Business Insider homepage for more stories.
Nouriel Roubini, an economist nicknamed “Dr Doom” for his pessimistic predictions, trashed the world’s most popular digital currency for being heavily manipulated into a Thanksgiving day tweet series.
Bitcoin has risen 167% this year, hitting a record high of $ 19,293 this week. But its price has fallen by more than $ 3,000 after high-volume crypto investors cashed in.
While crypto bulls have talked widely about its potential as a safe haven asset, Roubini argued that it has “no role” to play in the portfolios of institutional or retail investors as it was not a currency, a unit of account or a Payment.
“Retail suckers with massive FOMO jumped into BTC again as they did at the end of 2017 when the price went from 10K to 19K only to crash to 3K in 2019. Only the winners were the manipulative whales that dumped their BTC at retail suckers and led to its 85% drop, ”he continued.
Compared to stocks, bonds, real estate and other income-generating assets, he said there is no intrinsic value to be found in Bitcoin.
Roubini said crypto exchanges were also riddled with questionable trading practices, such as “pump and dump” – where traders over-inflate the value of a security in order to aggressively sell it later – and the entry of fake exchanges or price.
In addition to the high volatility – often at the hands of a small number of traders – the cryptocurrency market has been in the throes of a scandal. Last year, Bitfinex was accused of draining customers’ money to cover nearly $ 1 billion in missing cash, while top executives at rival platform BitMEX were accused of breaching anti-money laundering rules.
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Continuing his scathing attack on the digital token, he said: “It has no intrinsic value, it is not backed by any asset, it is not legal tender, it cannot be used to pay taxes. ” He also raised an environmental argument against the power of points of sale, or proof of stake, which comes from being able to mine more bitcoin because it consumes immense amounts of energy.
Roubini said that Bitcoin is not an inflation hedge because every time stocks go down, the digital asset goes down much more.
@ Nouriel / Twitter
He also equated investing in Bitcoin with gambling in a rigged casino. “At least in the legitimate Las Vegas casinos, the odds are not against you because these gambling markets are not handled like BTC,” he tweeted.
He concluded his thread of 12 tweets by saying, “Stay away from the cesspool of thousands of worthless sh * tcoins.”
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