Bitcoin critic Nouriel Roubini blasts BTC amid US banking crisis, says crypto house of cards is collapsing
Crypto critic and professor of economics at New York University’s Stern School of Business Nouriel Roubini expresses skepticism about Bitcoin (BTC) and other digital assets amid a banking crisis in the United States.
In a new Stansberry Research interview, Roubini says the crypto ecosystem has many bad actors, and the end of the asset class is near.
According to Roubini, crypto does not qualify as a store of wealth and is “highly risky”, as evidenced by the collapse of the FTX exchange overseen by founder and former CEO Sam Bankman-Fried (SBF).
“It is [Crypto] very risky. The lesson from the last year and a half has been that crypto is extremely dangerous. There are so many crooks, so many scams. You know that SBF and FTX are not an exception – they are the rule.
A world of swindlers, criminals, crooks, tax evaders and swindlers is the result. And this whole crypto house of cards is collapsing.
If you want security for your wealth, the last place you want to be is in crypto.”
While arguing that crypto’s volatility disqualifies it as a safe haven, Roubini claims that crypto-friendly banks Silvergate and Signature collapsed because of “doing toxic things.”
“I mean, first of all, Bitcoin has a tremendous amount of volatility. You know, a little over a year ago it was at $69,000. These days it’s between $19,000 and $20,000. So it’s lost about 80% of value The second top-10 [crypto assets] have lost more than that. You have a huge amount of market risk. You can wipe out your wealth in it.
Second, we’re talking about Silicon Valley Bank. But guess what? In the last week, two major crypto banks went bust. Silvergate and now Signature Bank. Because they again did toxic things, and people who had their deposits might be rescued, but might not.”
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