Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of 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
Brewin's Foster: the world’s most unconventional monetary policies

Brewin's Foster: the world’s most unconventional monetary policies

In this week's podcast, Guy Foster asks why the world’s biggest economies are pursuing some of the world’s most unconventional monetary policies. 

Play Charles Tan on Woodford & hidden trust income gems

Charles Tan on Woodford & hidden trust income gems

Cantor Fitzgerald investment company analyst Charles Tan discusses Woodford Patient Capital and some of the income trusts slipping under the radar.  

Play Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

In the second episode of our new series, Verleyen jumps on board a black cab and explains how hard it's become to find good valuation on the market.  

Wealth Manager on Twitter