Renowned American economist Nouriel Roubini is quite clear when he expresses his opinion about the current crypto craze and its possible collapse. The New York University academic and Chairman of his own economic consultancy firm Roubini Macro Associates LLC, believes that digital currencies are a bubble waiting to burst.
According to Roubini of Roubini Macro Associates, Bitcoin is the ‘biggest bubble in human history’ and this ‘mother of all bubbles’ is coming to an end. Bitcoin’s value dropped 60% last Friday February 2nd, 2018 to $8,000; a sharp contrast to its highs of $19,511 by the end of 2017.
Roubini went on to add that this drop is not only seen in Bitcoin but also with other cryptocurrencies which are experiencing greater decline and this signifies a great collapse.
For the past 10years, Bitcoin has been in the scene and according to the New York University economist, cryptocurrencies are nothing but fraud.
He also described cryptocurrencies as an ‘environmental disaster’ as a result of its increasing prices. Roubini believes that the drop in Bitcoin values serve as evidence of a possible crash.
Bitcoin reached its peak of close to $20,000 in December 2017 but took gone through a sharp decline which according to Roubini is a telltale sign of further declines ‘all the way down to zero.’
Following recent scams especially by companies floating fake Initial Coin Offerings (ICOs), there are reports that US lawmakers are looking into whether Bitcoin’s astronomical increase in value toward the end of last year was not as a result of control over the market.
However Bitcoin is not the only cryptocurrency feeling the pinch. Other digital currencies have also been impacted by reports that Facebook is going to prevent all cryptocurrency ads on tits site. This has lead to a significant decline in all digital currencies going into the first weekend of February 2018.
Roubini insists that he cannot sit back and allow the situation to turn out of hand before saying something, hence his reason for speaking out now.