LONDON — Nouriel Roubini, who’s bearish views and prediction of the 2008 fiscal crisis have earned him the nickname “Dr. Doom”, denounced cryptocurrencies including bitcoin calling the technology “a gigantic speculative bubble.”
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“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. The Bitcoin feeds on itself,” said Roubini, an economics professor at New York University’s Stern School of Business.
“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.”
Roubini was then asked to share his thoughts on blockchain technology.
“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.”
Roubini’s denouncement comes at the same time bitcoin sets a new record high of $7,888 today due to the reports that the much debated hard fork had been “suspended.”
The Segwit2x effort began in May with a simple purpose: to increase the blocksize and improve Bitcoin scalability. At the time, the Bitcoin community was in crisis after nearly 3 years of heavy debate, and consensus for Segwit seemed like a distant mirage with only 30 percent support among miners.
This is not Roubini’s first time commenting on the cryptocurrency.
In 2014, after the infamous fall of Mt. Gox, Roubini bashed bitcoin calling the technology a “Ponzi scheme” and disparaged its volatility.