From ‘bubble’ to ‘evil’, what economists Paul Krugman, Nouriel Roubini and Raghuram Rajan say about bitcoin

By: |
Published: April 14, 2018 1:43:03 PM

Apart from these two noted economists, former rockstar banker Raghuram Rajan had also expressed concern over the regulation of digital currency Bitcoin, saying that the virtual nature of the currency raised questions about how its value would be governed.

From ‘bubble’ to ‘evil’, what economists Paul Krugman, Nouriel Roubini and Raghuram Rajan say about bitcoin

Even as the elusive cryptocurrency Bitcoin slumps, leading Bank of America to say that it’s the biggest bubble in history, top economist Nouriel Roubini recently tweeted saying that Bitcoin technology Blockchain is a ‘crappy technology.’ Roubini, who had earlier called Bitcoin an environmental disaster, in an interview with Bloomberg, said that Blockchain is not only crappy technology but a bad vision for the future. “Pseudo crypto paradise is actually a medieval hellhole. Read this more brilliant critique of the most over-hyped and faddish technology ever: blockchain,” Roubini tweeted while attaching an article written by Kai Stinchcombe, the CEO of True Link Financial.

Roubini referred to as Dr Doom and often credited for correctly predicting the housing crisis, refers to Bitcoin as the “Mother of All Bubbles and Biggest Bubble in Human History Comes Down Crashing.” Roubini had tweeted the statement in February-18.

While Dr Doom has been critical of the cryptocurrency calling it a scam, nobel laureate Paul Krugman said, “Bitcoin is evil.” In a tweet in December-17, Krugman attached a chart showing Bitcoin’s slump and said, “What is it good for?.”

“Bitcoin looks like it was designed as a weapon intended to damage central banking and money issuing banks, with a Libertarian political agenda in mind—to damage states’ ability to collect tax and monitor their citizens financial transactions,” Paul Krugman wrote in a recent blog.

Apart from these two noted economists, former rockstar banker Raghuram Rajan had also expressed concern  over the regulation of digital currency Bitcoin, saying that the virtual nature of the currency raised questions about how its value would be governed.  Speaking at the Nasscom India Leadership Forum in 2014, Rajan noted that certain questions regarding valuing Bitcoin need to be asked. “Can we have confidence in unseen, unknown centres who maintain the value of the currency, or an algorithm that will maintain the value of the currency—we need more credibility there,” Raghuram Rajan had said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Yatra Online terminates $337 million merger with US-based Ebix Inc, alleges breach of agreement
2State govt’s permission for migrant labourers’ employment? Here’s where that stands on legal grounds
3Planters seek moratorium on rubber imports