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 HSBC's Stephen King warns of 'enormous' Brexit deficit danger

HSBC's Stephen King warns of 'enormous' Brexit deficit danger

Brexit will weaken the economy, fail to boost exports and lessen the country's ability to fund its 'enormous' deficit, according to HSBC's senior economic adviser Stephen King.

Play Premier's Smith: electricity and water can be a good mix

Premier's Smith: electricity and water can be a good mix

Exposing your person to electricity and water simultaneously is ill-advised, but what about your portfolio?

Play Citywire 10k: video highlights

Citywire 10k: video highlights

Citywire held its sixth annual charity run last week, which hosted over 200 people and raised £14,000. Here are the video highlights.

Your Business: Cover Star Club

Profile: how to control your destiny in an age of regulation

Profile: how to control your destiny in an age of regulation

‘RDR was good news to us because it aligned our practices with the industry,’ says Courtiers boss Jamie Shepperd

Wealth Manager on Twitter