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"The value of Bitcoin is zero. This bubble will end in another crisis."

New York University economics professor Nuriel Rubini warns in an opinion column published in the Financial Times of the recent sharp rises in Bitcoin: "Even the Flintstones had a more sophisticated monetary system."

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Roi Barak

Thursday, 11 February 2021, 14:22

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More than two years after warning U.S. lawmakers that cryptocurrencies are "if all the scams and bubbles," economics professor Nuriel Rubini has not changed his mind. "Because the basic value of bitcoin is zero and it will be negative if proper carbon tax is applied to its polluting energy production, I "The current bubble will eventually end in another crisis," Robinie said in an opinion column in the Financial Times yesterday. Robinie is considered one of the only economists to have predicted the 2008 global economic crisis a few years earlier - and for these gloomy predictions he earned the nickname "Doctor Day" -hdin "(DR. DOOM).

since October 2018 warning, Bitcoin jumped more than 600% and now is around the 45 thousand dollars - an increase of almost 60% this year. This week jumped a few moments worth 48 thousand dollars after It is known that Tesla has invested $ 1.5 billion and even announced that it intends to allow payments in Bitcoin further down the road.

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Not impressed by the sharp rises.

Robinie (Photo: GettyImages, Stephen Loveski)

Referring to the acquisition of Tesla, Robinie has repeatedly said that the digital currency is still "barely used by legitimate companies".

According to him, it is not advisable to refer to cryptocurrencies as "currencies", because almost nothing is priced according to them.

Robinie mentioned the last bitcoin bubble of 2017-2018, when cryptocurrency jumped from $ 1,000 to $ 20,000 and then plummeted back to $ 3,000.

According to him, the unpredictable volatility in the value of the "currency", which can erase profits, is no better than the economic system that existed in the Stone Age.

"Even the ancestral family ('the Flintstones') had a more sophisticated monetary system based on an agreed benchmark."

Robinie has reiterated in recent years that the crypto represents an even worse bubble than the "tulip bubble" of the 17th century, which when it exploded led to the bankruptcy of many investors and many other ripples in the market.

The economics professor at New York University's School of Business also argued that contrary to the promises of cryptocurrencies, they would not really "divide the financial world; provide banking services to those who do not receive banking services; or make the poor rich," because he said bitcoin mining, for example. , Is mainly dominated by oligopolists - a small number of players in the market - who are located in places like Russia, China or Belarus.

Robinie seems to have gone to war with speculation in cryptocurrencies.

On Tuesday the economist used his Twitter account to attack Jim Kramer, presenter of the popular financial program "Med Money" after it said companies that do not invest their money in Bitcoin are acting irresponsibly.

"Kramer is a fucking idiot," Robinie wrote, "he screwed up big before the 2008 economic crisis when he served as the head of the bubble band's cheerleaders who exploded on him and showed the whole world he's stupid."

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