Bitcoin and Robinhood will harm the poorest, says economist Nouriel Roubini
Bitcoin (BTC) and the Robinhood investment app will worsen the financial situation of the poorest investors, according to economist Nouriel Roubini, famous for predicting the 2008 crisis, in an opinion article in The Guardian newspaper on Wednesday (03).
For Roubini, the “democratization” of the investment provided by cryptocurrencies and Robinhood will backfire: “The populist meme, in which an army of millennials overthrows Wall Street, is serving only as a strategy to deceive amateur and unsuspecting investors. notion, ” he said.
The current bubble, according to the expert, has its origins in decades of “investment facilitation” for the poorest. This resulted in the 2008 crisis, when people who had no financial means were able to obtain loans to buy houses. “The expansion of credit, through mortgages and other debts, resulted in a bubble that burst in 2008, when millions lost their jobs, their homes and their savings,” he wrote.
He believes that success lies in hard work and patient investment and not, as he argues in the text, “in quick-get-rich schemes and bets on inherently useless assets, like cryptocurrencies“.
The economist, who also works as a financial advisor, frequently criticizes cryptocurrencies. He has done this at least since 2014, when BTC was quoted close to $1,000. At the time, he classified the asset as a pyramid scheme and a channel for illicit activities.
Bitcoin has no role in institutional or retail investors portfolios. It is not a currency: not an unit of account, not a scalable means of payment & is a highly volatile store of value. It is heavily manipulated: look at the investigation of Bitfinex by US law enforcement. 1/n
— Nouriel Roubini (@Nouriel) November 26, 2020