Nouriel “Dr Doom” Roubini: Bitcoin is a bubble, more states to prohibit exchanges

As Nouriel Roubini, professor in the New York City University, believes, Bitcoin is a bubble and will eventually burst. It would not be a big mistake to say that the cryptocurrency community has become accustomed to statements like this one. However, this speaker has correctly predicted the global financial crisis in 2008. What are his main views on Bitcoin, then?

“This is neither a serious method of payment nor a good way to store capital. The Bitcoin feeds on itself. There are no fundamental reasons for its price to reach such levels. What’s more – it is also used by criminals, for their shady 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.”

All in all, this is an extremely bearish position. While not directly calling Bitcoin a fraud like Jamie Dimon from JP Morgan Chase famously did, Roubini believes the evolution of cryptocurrency legal status will move towards more prohibition more than, as most experts suggest, towards slow liberalization. Of course, Dr Doom’s future does not look even remotely similar to what Tim Draper recently described.

While we should always consider the opinion of all parties, it’s safe to assume the reality will not be as tough as Mr. Roubini predicts. The central banks of financial hubs do not seem to be in haste to follow in China’s footsteps — and the leader of the Monetary Authority of Singapore, a very important hub in Southeast Asia, even considers himself a cryptocurrency advocate, although points at various negative sides still present in this sphere.