Nouriel Roubini Believes Altcoins are the ‘Mother and Father' of All Bubbles
- Nouriel Roubini believes bitcoin can't scale, too volatile, and can be spoofed
- Mike Novogratz defends BTC: ‘Bitcoin has an extremely healthy future‘
During a recent debate between Galaxy Digital’s Mike Novogratz and well respected economist Nouriel Roubini, the latter was quoted as saying that altcoins such as BTC, ETH, XRP did not deserve to be called “crypto-currencies” — since the lacked a number of qualities that most fiat assets such as the USD, EUR possess.
However, in this regard, Novogratz was quick to call out Roubini by saying that he was severely underestimating the potential of this burgeoning domain and that by the end of the year BTC would have surged quite drastically once again.
“Bitcoin is at $6,000 now. If at Christmastime it's above $6,000, you have to wear a shirt that says, ‘I love bitcoin.' If it's not, I will wear a T-shirt saying, ‘Nouriel was right.'”
The proposition was met with a nonchalant response wherein Roubini stated that he didn’t care much about bitcoin's fate or even the crypto sector as a whole. However, earlier in the conversation, Nouriel was seen dishing out a barrage of criticism against the $186 billion industry — claiming that BTC as well as some of the other premier assets in the market “lacked the core qualities” that were most commonly associated with global financial commodities and instruments.
Not only that, he then went on to add:
“In my opinion, crypto is the mother and father of all bubbles. Also, the term ‘cryptocurrency is totally a misnomer’ because in order to be a currency, you have to be a unit of account, valuable and a scalable means of payment.”
Other Key Highlights of the Debate
- Roubini believes that since BTC cannot be scaled-up in an effective manner — with the currency’s native tx rate currently laying around the 7 Tps mark — it cannot be used as an effective global payment protocol.
- He also is of the opinion that BTC is too volatile to be an efficient SOV (store of value).
- Lastly, Nouriel claims that BTC is very easily susceptible to activities such as “spoofing, pump-and-dump schemes” etc.
In closing out this piece, it should be pointed out that during the course of the aforementioned debate Novogratz looked extremely confident since he time-and-again stated that BTC had by and large been accepted by the masses as being a legitimate SOV.
“The reality is that there's a tremendous amount of stuff going on. In some ways, there's been a small miracle. So, in essence, I think Bitcoin has an extremely healthy future ahead of itself and my my senses tell me that it is going to continue to march even higher.”