Dr Doom WARNING: Bitcoin is in the red, don’t bet on cryptocurrencies
Nobel laureate Nouriel Roubini, best known for accurately predicting the great financial crisis, which earned him the nickname “Doctor Doom”, sharply criticized bitcoin and its impact on the environment, in an author’s text published in the Financial Times.
“Since the basic value of bitcoin is zero and it would be negative if an appropriate tax was applied to its production, which causes massive environmental pollution, I predict that the current bubble will eventually burst, and everything will end in another collapse,” Rubini wrote. .
Nouriel Roubini, a professor of economics at the Stern Business School at New York University, has been around for a long time a critic of cryptocurrencies, often calling this digital asset “shitcoin.” He has repeatedly argued that bitcoin should not be called a currency at all.
The professor of economics believes that bitcoin “is not a unit of account”, “is not a scalable means of payment” and “is not a stable store of value”. Instead, he claims it is a pumping and discharging scheme, where the fear of failure leads investors to speculate about a growing bubble.
Worse, Rubini says yes mining and processing of cryptocurrencies harms the environment. There is evidence to support his claims on this issue.
According to current estimates, bitcoin mining consumes the same amount of energy each year as the entire Netherlands consumed in 2019., data from the University of Cambridge and the International Energy Agency show.
A 2020 Harvard study also found that, although cryptocurrency mining does not “burn the planet”, there is a “scenario in which every $ 1 cryptocurrency created would be responsible for health and climate damage of 66 cents”.
Rubini’s views contradict the views of the growing group of “bitcoin bulls”.
After Jim Kramer, the famous head of CNBC, said that he believed that it was “almost irresponsible” that companies do not own bitcoins, Rubini launched an attack.
He called the host of “Crazy Money” a “total idiot” and a “fan leader” who trampled on “s-t coins” in a tweet in which he called out the former hedge fund manager for not recognizing the 2008 mortgage crisis and supporting what he considered balloon in the cryptocurrency market.
“Risky, unstable bitcoins do not belong to the portfolio of serious institutional investors. “Many of his supporters are naive people who are manipulated by an army of insiders and sellers of snake oil,” Rubini said.
“Elon Musk and Michael Sailor can invest their house by betting on bitcoin. That doesn’t mean you should do the same“, He added.
Source: BIZlife by www.bizlife.rs.
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