5 Nouriel Roubini Predictions

4. Cryptocurrency and Bitcoin Bubble 2018-2022

Roubini has always been a vocal critic of cryptocurrencies and Bitcoin in particular. He has often called them speculative bubbles and vehicles for illegal activities. According to the economist, Bitcoin cannot be a currency as it does not fulfill the basic functions of a currency as a stable store of value.

Additionally, the economist has raised concerns about the extreme levels of volatility associated with cryptos that make them too illiquid, costly, and insecure. The fact that Bitcoin can only process seven transactions per second raises serious questions about its scalability. Roubini also insists that Bitcoin is not entirely decentralized as it is dominated by fewer miners, exchange developers, and whale investors.

While Roubini has always insisted on cryptocurrencies being the mother or father of all scams and bubbles, he has been developing a suite of financial products with Atlas Capital. The two are working on tokenized dollar replacements backed by real assets such as short-term U.S. treasuries and U.S. property.