The controversial economist Nouriel Roubini known for his criticism of bitcoin and cryptocurrencies in general seems that is changing the tone toward bitcoin, saying that it could serve as a partial store of value.
During an interview with Yahoo Finance, the Nobel winning economist admitted that Bitcoin may function as a “partial” store of value.
“It may be a partial store of value because unlike thousands others (what I call s***coins) it cannot be so easily debased because there is at least an algorithm that decides how much the supply of Bitcoin raises over time.”
During the interview, he adds that most altcoins are worse than the U.S. Federal Reserve which is the view of most Bitcoin maximalists who are skeptical toward altcoins and believe only in bitcoin and its fixed 21 million supply.
Still, Roubini remains very critical toward cryptocurrencies and he does even consider crypto real money. And of course, during the interview, he went to the usual criticism of bitcoins unscalability comparing 5 transactions per second that the bitcoin network can process versus 25,000 transactions per second Visa can process. Also adding that bitcoins volatility prevents it to function as a currency.
The Central Bank Digital Currencies (CBDCs)
Nouriel Roubini — who was mocking Bitcoin when it was trading under $58 in April 2013 (Tweet below) — actually predicts that central bank digital currencies will make cryptocurrencies obsolete:
— Nouriel Roubini (@Nouriel) April 16, 2013
“Once you have a central bank digital currency, every individual can use an account with a central bank to do payments. So not only you don’t need crypto, you don’t even need Venmo, you don’t even need a bank account, you don’t even need a check.”
While many central banks around the world are racing to launch their CBDCs, China has already launched its digital currency and is testing it. The difference that maybe Dr. Doom does not get is the decentralized nature that distinguishes cryptocurrencies from CBDCs. Bitcoin was created to escape the Fiat bubble. Central banks with their CBDCs, are just placing the fiat currencies in a centralized blockchain.