Many people have been switching their stances on bitcoin as of late. The currency has done so well this year and come so far that many naysayers have suddenly turned into big fans, and it looks like another one has been turned. The person who is suddenly pushing bitcoin is an economist named Nouriel Roubini, who in the past, has been rather unkind to the asset.
Roubini: Maybe BTC Isn’t So Bad
Bitcoin has more than tripled since March. At the time, the asset had fallen below the $4,000 mark, though now, the currency is trading for well over $16,000. This has caused many people to suddenly believe in the world’s number one cryptocurrency by market cap. The fact that it can potentially surge this much during a widespread pandemic has put the asset on the map.
Roubini is a professor of economics at New York University’s Stern School of Business. He is also one of the biggest critics of bitcoin, claiming in the past that bitcoin would ultimately be added to the “museum of failed coins” with several other digital currencies. Now, however, in a new interview, he claims that bitcoin could potentially service as a “partial store of value.”
[Bitcoin is] maybe a partial store of value because, unlike thousands of other what I call sh*t coins, 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 [U.S. Federal Reserve] is doing.
While he’s suddenly positive towards bitcoin, he does not necessarily feel the same way about blockchain and remains somewhat skeptical about it. He comments:
In my view, [bitcoin] is not scalable, is not secure, is not decentralized, is not a currency, and remember that many central banks, starting now with the Chinese one, the Swedish, but even the eurozone, are starting to think about creating a central bank digital currency. Once you have a central bank digital currency, every individual can use an account with the central bank to do payments.
Early last week, the European Central Bank (ECB) held a two-day forum featuring Christine Lagarde, Jerome Powell of the Fed, and Andrew Bailey of the Bank of England to discuss the digitization of currencies in the future. The ECB has even hinted that it will potentially see about releasing a digital version of the euro in the coming future.
The Crypto World Is Moving Forward
Paolo Ardoino – chief technology officer at bitcoin and crypto exchange Bitfinex – mentioned that this would be a huge step forward for bitcoin and crypto in general, stating:
Milestones like this represent steps in the ascent of the king of crypto. Those who still say bitcoin is a bad asset and see only obstacles in its path no longer understand the world in which we live.