Thursday, February 18, 2021

Nuriel Roubini Has Some Thoughts on Bitcoin

Economist Nuriel Roubini has been a fierce critic of digital currencies like Shitcoin Bitcoin. And he's not backing down even as Bitcoin passes $50,000. He certainly makes some persuasive points as to why we are in a speculative bubble:

1. Bitcoin's not a unit of payment or unit of account

2.  It's not an asset-- no cash flow, no yield, no use, hence no fundamental value (note gold similarly has no yield, but is used in jewelery as well as medical and industrial processes; so has intrinsic value)

3. It has a negative cost to society because of the electricity necessary to "mine" it. It contributes to climate change through higher demand for fossil fuels...it is anti-ESG! In another words, it's worth less than zero.

4. And once goverments start issuing their own digital coins...all these private shitcoins will be done.

5. No reasonable corporate CFO will put their balance sheet at risk with such a volatile security. 

(Oh, and Elon Musk sucks...not necessarily an argument for or against Bitcoin, just a statement of fact).


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