Nouriel Roubini: Bitcoin’s ‘Not’ a Currency But a Partial ‘Store of Value’
Another one down!
As Bitcoin enjoys a rally, more and more Bitcoin skeptics are changing their tune. This time it's Dr. Doom’, Nouriel Roubini.
In an interview with Yahoo Finance, the professor of economics at New York University's Stern School of Business and CEO of Roubini Macro Associates who has called BItcoin previously a “mother of all scams” said it could be a store of value, in part, but maintained that it is not currency. He said,
“Bitcoin is not a currency.
It's maybe a partial store of value because, unlike thousands of other what I call shitcoins, it cannot be so easily debased because there is at least an algorithm that decides how much the supply of Bitcoin raises over time, because for most of those other ones, literally, is done ad hoc, and they're being debased faster than what the Fed is doing.”
According to him, cryptocurrency is a “misnomer” because, in order to be a currency, one needs to be a unit of account, but “nothing is priced in” BTC or any other cryptocurrency, for that matter.
Moreover, to be a currency, it has to be a scalable means of payment and be a stable store of value that is not “very volatile.” When it comes to Bitcoin, it
“is not scalable, is not secure, is not decentralized, is not a currency.”
He also believes once the central bank digital currencies (CBDC) launch, which is already in the works, especially the digital yuan, then “every individual can use an account with the central bank to do payments.”
In that case, Roubini doesn’t think anyone would need Venmo or even a bank account, let alone crypto. Roubini said,
“The big revolution we're gonna see in the next three years is gonna be central bank digital currencies.
They're gonna be crowding out digital payment systems, or in the private sector, starting with cryptocurrencies that are not really currencies.”
Meanwhile, the crypto market participants believe CBDC will rather drive the interest into cryptos because the digital fiat, unlike cash, will be used to censor and keep track of users’ activities.
As such, Bitcoin and cryptos’ censorship resistance and fixed supply will only make them more attractive.