This week has been quite busy but exciting for crypto users, not only for the great evolution of prices but also because of the many debates about the usability and future of these technologies.
The recent surge in BTC’s valuation, along with events related to Blockchain Week stimulated the interest in cryptocurrencies, with debates in which Bulls had a clear dominance.
After optimistic statements from Mike Novogratz, CEO of Galaxy Digital, Nouriel Roubini attended the SALT 2019 conference to “balance the universe”. From Las Vegas, Roubini again made an explicit statement on cryptocurrencies.
Crypto is a Bubble… Again
For the renowned economist, the invention of cryptocurrencies has been one of the worst events in the world’s economic history. The expert considers that crypto is a bubble worse than any other that humanity has experienced:
“Crypto is the mother and father of all bubbles… cryptocurrency is totally a misnomer. To be a currency, you have to be a unit of account, valuable and a scalable means of payment.”
A bubble is an economic cycle characterized by a sudden rise in prices followed by a drop of similar intensity. From the theoretical point of view, one of the key characteristics is that this behavior has no obvious support from the fundamental analysis since everything is based on pure speculation.
They Are Crypto, But The Are Not Currencies
Roubini also explained that the lack of control by a central organization to establish a coherent monetary policy removes a lot of credibility from cryptocurrencies as well.
The economist —who was nicknamed “Dr. Doom” — pointed out that the strong volatility of the markets is a sign of their inability to be used as currencies, making the crypto enthusiasts’ dream of revolutionizing the financial system practically impossible to fulfill:
“I’ve never seen such a level of manipulation. The reality is, these are not currencies.”
Roubini’s opinions, while valid, are also debatable, and in an ecosystem such as the cryptoverse, his recognition is not enough to take his words as absolute. Not everyone thinks alike and Novogratz answered with a strong and summarized message:
“The debate is over, bitcoin won. It is now seen by people all around the world as a legitimate place to [store] their value.”