Roubini calls BTC 'mother and father of all bubbles', Twitter not impressed

08 Mar, 2019 | Updated: 08 Mar, 2019
by Joeri Cant
Bitcoin
Roubini calls BTC 'mother and father of all bubbles', Twitter not impressed

Notorious cryptocurrency hater Nouriel Roubini, calls Bitcoin 'the mother and father of all bubbles', in an interview with the global professional investor association, the CFA Institute.

Roubini, a New-York-based economist who loves to hate cryptocurrencies, and who correctly called the housing bubble in the lead-up to the global financial crisis in 2008, repeated the same old claims that both crypto and blockchain have no place in the future of fintech.

Clearly the economist hasn't changed his well-known tune on the world's most popular cryptocurrency.

He started out by saying that the entire crypto industry consists of assets that are neither money nor currency, and that they are neither stable in terms of bring a store of value, nor a scalable means of payment.

'Well, I’m an expert of asset bubbles and of financial crisis. I’ve studied so many historical bubbles. I wrote a whole book, Crisis Economics, on bubbles and their busts', Roubini said.

'I know one when I see one. And, of course, knowing when there is a real bubble, it’s a long and complicated story. But to me, the whole crypto space is one of assets that are not really money. They’re not really a currency. They’re not a scalable means of payment. They’re not as stable in terms of store of value.'

Read more: Is Bitcoin at $1 million really possible?

According to Roubini, Bitcoin's performance represents an exponential, parabolic bubble, which started to burst due to the fact that there is no real fundamental value backing it as an asset.

'To me, it looked like an exponential, parabolic bubble. That’s why I became very vocal towards the end of 2017. And guess what? That bubble started to burst because there was no real fundamental value on these assets. Then even bitcoin, since the peak, has lost almost 85% of its value. And that’s the best one because thousands of these s**tcoins were created as scams and have lost almost all of their value. The top 10 cryptocurrencies, excluding bitcoin, the average loss of value since the peak has been between 92% and 93%.'

'This was to me the mother and the father of all bubbles. And like every bubble, it went out of control and then went bust, and I was confident enough I was right that this was a bubble.'

Read more: Nouriel Roubini is at Davos, spouting his anti-crypto rhetoric

Roubini further argued that the blockchain technology has nothing to do with the future of financial services.

According to Roubini the real revolution in financial services is fintech, 'but fintech has nothing to do with crypto'.

'Fintech is going be a combination of artificial intelligence and big data and the ubiquitous internet. It will revolutionize payment systems, credit allocation, capital market functions, insurance, investment management, financial advice, etc.'

Despite the fact that Roubini continues to spread his crypto hate, most know that Roubini should not be taken particularly seriously as he has shown no true understanding of the technology.

One could question the real reason behind his overzealous need to defend the centralized banking system that crypto is specifically designed to replace.

If Roubini says anything else 'interesting' you can be sure Chepicap will be here to report it!

To no one's surprise, crypto Twitter isn't at all impressed with Roubini's statements.

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