American economist Nouriel Roubini on May 19 criticized institutional investors who invest in the unused concept of ‘Bitcoin’ which according to him has no internal value. He also demanded that the investors be fired on the spot.
The following reaction by a New York University professor of the Western School of Business comes amid reports of cryptocurrency Bitcoin down nearly 20 percent in the last 24 hours to $ 36,900.
Cryptocurrency bloodshed continues; Bitcoin has now dropped by about 20% over the last 24 hours
“Bitcoin is falling more than 40% from its height in less than a month. Which institutional investors are negligent enough to invest in risky and unstable false investments with no internal value? They should be fired right away if they commit such negligent gambling guesses!” Nouriel Roubini wrote on Twitter.
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This is not the first time an economist has spoken out against cryptocurrency. Roubini on February 23 had said investors who sell “fear of losing” would be pressured to invest in Bitcoin at a higher rate, reports Yahoo Finance.
“As of 2017, we have hundreds of thousands of FOMO buyers (fear of missing out) entering this asset class. And they will buy it at a higher price as it happened in December 2017 when it was $ 20,000 and fell to $ 3,000 by the end of the following year. So, that’s the same thing – people are just coming in because of FOMO, feeding the bubble, cheating, in the end, they will be crushed, ”reports Yahoo Finance Roubini.
A NYU Stern professor of economics once said that the rise in Bitcoin is driven by “massive fraud,” not rushing fences against inflation.
In December 2020, Nouriel Roubini referred to Bitcoin and other cryptocurrencies as “sh-tcoins,” according to which he has no place in portfolios of commercial or institutional investors.
“First of all, calling it money – it’s not money. It’s not an account unit, it’s not a payment method.… It’s not a fixed price store. Second, it’s not even an asset,” Roubini said.
Among others who have spoken openly about the recent collapse of the bitcoin price include Capital Mind founder Deepak Shenoy. He compared the market downturn with the RBI’s forex stocks. “Bitcoin market volume is down by about $ 300 billion + a week. That’s about half the RBI assets of forex,” Shenoy wrote on Twitter.
Here is what Monk Entertainment founder Viraj Seth wrote:
Expressing his views on cryptocurrency and bitcoin, Mobius Capital Partners co-founder – Mark Mobius – had said on May 18 that he did not like cryptocurrency and called it a “very dangerous place.”
Mobius had said it was difficult to predict digital price direction and questioned how easy it was to convert bitcoin and other cryptocurrencies into “real money” for people to use, reports CNBC. He went on to share his disagreement with suggestions that bitcoin could replace gold as a hedge against inflation.
“I can’t have a crypto ring and I can have a gold ring – that’s a real difference,” CNBC quoted Mobius as saying.
“It’s a completely different situation and I don’t know why people say bitcoin can be like gold, it’s completely different. Gold is gold and it’s tangible, and bitcoin is not,” he added.
The subsequent decline in two best-selling currencies was sparked last week by Elon Musk’s conversion to Tesla taking bitcoin for payment, followed by some tweets that caused confusion as to whether the carmaker had spent the money he was holding.
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Despite this, China’s announcement on Tuesday that it was blocking financial institutions and payment companies from providing services related to digital transactions, including a warning to investors about speculative crypto trading, appears to have boosted sales.
