Nouriel Roubini (Nouriel Roubini), an economist who accurately predicted the 2008 financial tsunami and is known as Dr Roubini, opposes the use of bitcoin and other cryptocurrencies as an alternative hedge against inflation. In fact, Roubini believes that cryptocurrencies are not currencies or financial assets at all.
Roubini refutes the view that cryptocurrency represents a new form of currency and believes that cryptocurrency cannot meet the four criteria of currency: as a unit of account, as a means of payment, as a stable store of value, and as a single benchmark for comparing the value of similar financial instruments.
According to Roubini, the cryptocurrency also does not meet the definition of any asset.
He pointed out that assets (bonds, stocks, real estate or precious metals) have a certain cash flow or utility that can be used to determine their basic value and can generate income, capital gains or some form of practicality. Bitcoin and other cryptocurrencies have no income or utility, so they can't get basic value at all.
For Roubini, the sharp rise in cryptocurrency prices over the past few years is characterized by a market bubble.
"A bubble occurs when the price of something is much higher than its basic value. We can't even determine the basic value of these cryptocurrencies, but their prices have risen sharply. In that sense, it's like a bubble to me. " He said.
Bitcoin has plummeted about 50 per cent from its all-time high of more than $60000 set earlier this year. In fact, the collapse of Bitcoin and other cryptocurrencies has been blamed for destabilizing the entire financial market, including stocks.