Economist Nouriel Roubini, recognizes Bitcoin as a partial store of value. Specifically, because it cannot easily degrade.
Sure enough, Nouriel Roubini, an economics professor at New York University’s Stern School of Business and CEO of Roubini Macro Associates, joined Yahoo Finance Live on November 6. To give your opinion on Bitcoin and your perspective on the economy.
As a fun fact, Roubini is famous for his prediction of the financial crisis of 2007-2008, which is why he earned the nickname “Dr. Doom ”. It should be noted, that since the appearance of BTC, he has been a strong critic of the digital currency.
Bitcoin as a store of value
At the interview, Adam Shapiro, asked Roubini about different types of cryptocurrencies. Mainly, focusing on Bitcoin.
In fact, Nouriel Roubini, spoke about Bitcoin (BTC), the digital currencies issued by central banks (CBDC). Also, about the American economy.
Indeed, it indicated that: “Cryptocurrency is a misnomer, because 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.”.
Also, “To be a currency, it must be a scalable means of payment and a stable store of value that is not very volatile”.
However, Roubini did admit that Bitcoin could serve as a store of value. Which is an important function of money along with a unit of account and a medium of exchange.
“Bitcoin, is perhaps a partial store of value, because, unlike thousands of other currencies that I call shitcoins, it cannot be degraded that easily. Because there is at least one algorithm that decides how much the supply of Bitcoin increases over time”.
Opinion regarding CBDCs
Equally important, on digital currencies issued by central banks, it seems that there is a lot of potential to be seen.
Ultimately, you are confident that central bank digital currencies, or CBDCs, are the future of money. They are capable of replacing major financial services and cryptocurrencies in the near future.
“They are going to displace digital payment systems, or in the private sector. Starting with cryptocurrencies, which are not really currencies. ‘
To end the interview, he valued the revolution that the CBDC will bring and stated that:
“Not only do you not need crypto, you don’t even need Venmo. Or even a bank account. You don’t even need the check. And the great revolution that we will see in the next three years will be the digital currencies of the central banks”.
Although you have been very critical of Bitcoin in the past, did you say anything positive this time? Leave us your opinion in the comment box.
I close with this phrase from Wayne Dyer: “If you change the way you look at things. The things you look at change”.