Nouriel Roubini is well-known to those keeping an eye on the crypto industry. Roubini, who is known as “Dr. Doom” after predictions related to the financial crisis of 2007 – 2008, has been a harsh critic of cryptocurrencies. Now, it would appear that he has – at least partly – begin to change his views.
Roubini admits Bitcoin could be a partial store of value
This recent concession from Roubini came during a panel during the CC Forum 2019 conference in London. The economist attended the event alongside notable crypto industry profiles, such as Tone Vays, Brock Pierce and Bobby Lee.
Put simply, this panel saw Roubini cede that Bitcoin can work as a store of value, at least partly. This is something that the economist has hitherto been reluctant to state, as he has taken a hard stance against the rise of crypto and digital currencies.
His previous stance is not entirely gone, however, as Roubini added several caveats in his admission of Bitcoin as a store of value. Specifically, the economist said:
“Maybe Bitcoin is a partial store of value but it’s not a unit of account, it’s not a means of payment, it’s not scalable […] in spite of its rally earlier this year, it’s lost 60% in value since its peak, so I don’t see it going anywhere frankly.”
Roubini taking “baby steps”
This statement is obviously somewhat nonsensical, as Bitcoin is demonstrably both scalable and a means of payment. Nonetheless, crypto observers have welcomed Roubini’s comments. Tone Vays then went on to tweet that this statement represents some “baby steps” from Roubini’s part in acknowledging Bitcoin’s use.
Notably, Roubini turned to Bobby Lee during the panel and reportedly stated that he’d “take the US dollar over any one of your shitcoins”. Moreover, Roubini also said that although innovation in the financial sector was bound to happen, this would likely come from big data, AI and IoT – rather than blockchain and crypto.
Roubini also went on to argue that he is, despite his comments, not a defender of the existing financial system. With that said, Roubini nevertheless went on to defend how central banks acted during the past financial crisis.
Furthermore, Roubini argued that tokenized assets would return society to a “Stone Age of bartering”. He said that widespread crypto adoption would inhibit a measure of the relative prices of goods, saying that “even the Flintstones had a more sophisticated system of value than crypto”.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.