Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Roubini brands bitcoin a 'ponzi game' in Twitter rant

Roubini brands bitcoin a 'ponzi game' in Twitter rant

Renowned economist Nouriel Roubini has taken to Twitter to lambast virtual currency bitcoin, describing it as a 'ponzi game'.

Roubini, nicknamed Dr Doom on account of his bearish views, declared on the social media website that Bitcoin isn't a currency but rather a ponzi game and 'a conduit for criminal/illegal activities'.

He was keen clarify that Bitcoin isn't a store of value, as the virtual currency is not backed by assets. Other reasons to disregard Bitcoin included the fact it has no unit of account, as no price of goods and services are set in it. 'And given its volatility all who accept it convert it right back into $/€/¥,' Roubini explained.

In another update, he continued: 'Bitcoin bugs, like gold bugs are fanatics who speak of bitcoin in cult-like religious ways. Like gold bugs they have paranoid conspiracy views on the [US dollar].'

The credibility of Bitcoin has proved a hotly debated topic since its price rose during 2013. In early March it emerged that HMRC is considering dropping the 20% value-added tax on Bitcoin transactions.

Traders in the virtual currency had argued the VAT had made their businesses uncompetitive against foreign rivals, with the likes of Hugh Halford Thompson - founder of Bitcoin trading website QuickBitcoin - threatening to relocate his business overseas  

In late February, one of Bitcoin's major exchanges, Mt Gox, lost $500 million of customer deposits after it collapsed.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Big City Bright Future

Big City Bright Future

Big City Bright Future, the brainchild of BlackRock, is a three-week work experience programme for school leavers looking to forge a career in the City.

Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Read More
Your Business: Cover Star Club

Profile: change is the only constant for Quilter Cheviot

Profile: change is the only constant for Quilter Cheviot

This is not the first time we have profiled David Miller, but at the time of his previous appearance his company looked very different.

Wealth Manager on Twitter