The economist Nouriel Roubini, recognizes Bitcoin as a partial reserve of value. In particular, because it can’t be easily degraded.
Indeed, Nouriel Roubini, professor of economics at New York University’s Stern School of Business and executive director of Roubini Macro Associates, joined Yahoo Finance Live on November 6. To give his opinion about Bitcoin and his perspective on the economy.
It’s not scaleable, it’s not secure, it’s not decentralized, it’s not a currency: Roubini on Bitcoin https://t.co/KfUtseXd4M via @YahooFinance
– Nouriel Roubini (@Nouriel) November 8, 2020
Interestingly, Roubini is famous for his prediction of the 2007-2008 financial crisis, which is why he earned the nickname „Dr. Doom. It should be noted, that since the appearance of BTC, he has been a strong critic of digital currency.
Has Bitcoin been the best asset of value during the crisis?
Bitcoin as a reserve of value
In the interview, Adam Shapiro, asked Roubini about different types of cryptomontages. Mainly, focusing on Bitcoin.
In fact, Nouriel Roubini talked about Bitcoin (BTC), the digital coins issued by central banks (CBDC). Also, about the US economy.
In effect, he said: „Kryptomoney is a misnomer, because to be a currency, one needs to be a unit of account. But, nothing has a price in BTC or any other crypto currency, for that matter“.
Furthermore, „To be a currency, it must be a scalable means of payment and a stable deposit of value that is not very volatile“.
Bitcoin is NOT a currency: it is not a unit of account, it is not a single numeraire, it is not a scalable means of payments, it is not backed by any asset, it is not legal tender, its price is highly manipulated & thus its partial store of value function is based on nothing.
– Nouriel Roubini (@Nouriel) November 9, 2020
However, Roubini did admit that Bitcoin could serve as a store of value. That it’s an important function of money along with a unit of account and a medium of exchange.
„Bitcoin, is perhaps a partial store of value, because, unlike thousands of other currencies that I call shitcoins, it can’t be degraded so easily. Because there’s at least one algorithm that decides how much the Bitcoin offer increases over time.
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Opinion regarding CBDCs
Equally important, about the digital currencies issued by central banks, it seems that there is a lot of potential to be seen.
In short, he is confident that the digital currencies of central banks, or CBDC, are the future of money. They are capable of replacing major financial services and crypto-currencies in the near future.
„They are going to displace digital payment systems, or in the private sector. Starting with crypto-currencies, which are not really currencies“.
At the end of the interview, he assessed the revolution that the CBDCs will bring and expressed that
„Not only do you not need crypto-currencies, you don’t even need Venmo. Or even a bank account. You don’t even need the check. And the great revolution that we will see in the next three years will be the digital currencies of the central banks.
Although you’ve criticized Bitcoin strongly on previous occasions, did you say something positive this time? Leave your opinion in the comment box.
I close with this sentence by Wayne Dyer: „If you change the way you look at things. The things you look at change.