Bitcoin – ‘Dr. Doom’ economist Nouriel Roubini trashes Bitcoin for being closely manipulated, and blames retail investor FOMO for its latest pump-and-dump | Foreign money Information | Monetary and Enterprise Information

• Nouriel Roubini, generally known as “Dr. Doom” for his bearish views, slammed Bitcoin for being closely manipulated and blamed retail investor FOMO for this week’s growth and bust on Thursday.
• Roubini tweeted the digital token has no function to play within the portfolios of retail or institutional traders as a result of it has zero intrinsic value.
• “Retail suckers with large FOMO have been leaping once more into BTC as they did in late 2017 when price went from 10Ok to 19Ok solely to crash all the way down to 3K in 2019,” he mentioned.
• In response to him, investing in Bitcoin is identical as playing at a rigged on line casino.
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Nouriel Roubini, an economist nicknamed “Dr Doom” for his pessimistic predictions, trashed the world’s hottest digital forex for being closely manipulated in a series of tweets on Thanksgiving Day.

Bitcoin has risen 167% this 12 months, hitting a file of $19,293 this week. However its price tumbled by greater than $3,000 after giant quantity crypto traders cashed in on their holdings. 

Whereas crypto bulls have largely talked up its potential as a safe-haven asset, Roubini argued that it has “no function” to play in institutional or retail investor portfolios as a result of it is not a forex, unit of account, or a scalable technique of fee.

“Retail suckers with large FOMO have been leaping once more into BTC as they did in late 2017 when price went from 10Ok to 19Ok solely to crash all the way down to 3K in 2019. Solely winners had been the manipulative whales that dumped their BTC to the retail suckers & led to its 85% price fall,” he went on.

In comparison with stocks, bonds, actual property, and different income-generating belongings, he mentioned there isn’t any intrinsic value to be present in Bitcoin.

Roubini mentioned crypto exchanges had been additionally riddled with questionable buying and selling practices, reminiscent of “pump and dump” – the place merchants over-inflate the value of a safety the maintain in an effort to aggressively promote it later – and inputting pretend trades or costs.

Along with excessive volatility — typically by the hands of a small variety of merchants — the cryptocurrency market has been plagued with scandal. Main exchange Bitfinex was accused of draining consumer cash to cowl virtually a billion {dollars} in lacking cash final 12 months, whereas high executives at rival platform BitMEX had been charged with breaking anti-money laundering guidelines.

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Persevering with his scathing assault in opposition to the digital token, he mentioned: “It has no intrinsic value, it’s not backed by any asset, it’s not authorized tender, it can’t be used to pay taxes.” He additionally raised an environmental argument in opposition to the ability of POS, or proof of stake, that comes with with the ability to mine extra bitcoins as a result of it consumes immense quantities vitality.

Roubini mentioned Bitcoin just isn’t an inflationary hedge as a result of each time stocks go down, the digital asset falls far more. 

He additionally equated investing in Bitcoin with playing at a rigged on line casino. “No less than in legit Las Vegas casinos, odds aren’t stacked in opposition to you, as these playing markets aren’t manipulated the way in which BTC is,” he tweeted.

He concluded his 12-tweet-thread by saying “keep away from the cesspool of 1000s of nugatory sh*tcoins.”

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