In the latest development that has surprised many people in the crypto space, Professor Nouriel Roubini, dubbed ‘Dr. Doom’ by a majority in the virtual currency community due to his skeptical comments on bitcoin and cryptos in general, appears to have softened his stand on Bitcoin.
While speaking in a recent interview, Roubini stated that Bitcoin can be considered a partial store of value since it cannot easily get debased as it is the case with many of the other altcoins.
“It’s maybe a partial store of value, because, unlike thousands of other what I call shitcoins, 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 Fed is doing.”
This statement is quite interesting since just recently, Roubini had argued that Bitcoin is destined to argue in the ‘museum of failed coins’ with many other virtual currencies; while also criticizing PayPal’s move to support cryptos like Litecoin and Bitcoin.
Institutional Investors
Acknowledging Bitcoin’s value in this regard highlights the status the crypto has already acquired lately. Certainly, PayPal’s thawing attitude which is also the case by other large institutions like Square Crypto, MicroStrategy, among others, has played a huge role in this issue.
As matter of fact, based on a report shared by Michael Sonnenshein, the Managing Director at Grayscale, the flow to Grayscale’s Bitcoin Trust (GBTC) has been considerably higher than the current flow of gold ETFs. The interesting bit is the fact that the findings in the report were compiled by JP Morgan Chase, one of the United States’ biggest banks.
Putting that into context, Roubini still remains doubtful about the future of this asset class. He went ahead to allege that it is not scalable and the introduction of Central Bank Digital Currencies (CBDC) will eventually make the crypto sector redundant.
Roubini was quick to say that with a CBDC, all people can use an account with the central bank to do payments. That might kick-start a ‘big revolution.’
“They’re gonna be crowding out digital payment systems, or in the private sector, starting with cryptocurrencies that are not really currencies.”
These comments from Roubini may play a major role in the price action that dominates in the bitcoin market in the short term.
