Economist Nouriel Roubini has explained the reasons why bitcoin and other cryptocurrencies have no place in the portfolios of retail or institutional investors even though they are trading through the clouds.
“First of all, calling it a currency, it’s not a currency. It’s not a unit of account, it’s not a means of payment (…) it’s not a stable store of value. Secondly, it’s not even an asset,” said Roubini, known as Dr. Doom.
The bitcoin has no essential value, said the economist comparing the cryptocurrency assets such as bonds, stocks, real estate or precious metals, which provide useful income and profits.
“While in the case of Bitcoin, there is no income. There is no use. There is no utility. The only thing is a speculative, self-fulfilling kind of rise, and that rise is driven totally by manipulation,” he argued.
As published by Yahoo Finance, Roubini warned that there is academic research that indicates that “this pseudo stable coin Tether” has been created and is used literally to manipulate the price of bitcoin.
“The price of Bitcoin is totally manipulated by a bunch of people, by a bunch of whales. It doesn’t have any fundamental value”he concludes.
On December 20, stock market data indicated that the price of bitcoin grew more than 1.31% to be worth more than $ 24,000 for the first time.