And it’s not just Bitcoin, Roubini added. There are more than 1,300 cryptocurrencies or ICOs, and “most of them are even worse” than the largest digital token. These constitute a “a bubble to the power of two or three,” he said.
Furthermore, while many of bitcoin’s critics (Warren Buffett, Ray Dalio, Jamie Dimon – though Dimon later recanted) have clarified that they see value in “blockchain technology”, which many have proclaimed has the potential to change the world by disrupting industries as diverse to Wall Street and health care.
That doesn’t mean Bitcoin is GOING to Zero, obviously there are millions of investors who think otherwise – those investors bought and drove the price up to 20,000. But Roubini’s economic analysis should not be disregarded, he was the only analyst that correctly predicted the 2008 crash and is considered one of the leading minds in global macro economic analysis.
Just remember if you are now guessing if this is the bottom and want to buy, you have fallen victim to the trading trap – you are now a trader, not an investor. Good luck!