During a panel discussion about digital currencies, Roubini once again trashed crypto as a massive “bubble.” Meanwhile, Novogratz cooed that bitcoin is a “miracle.”
‘Crypto is the mother and father of all bubbles’
Despite the fact that Roubini has little real-world (i.e., non-academic) experience managing large sums of money, he has repeatedly dismissed bitcoin as worthless and a giant scam. He doubled-down on these sentiments today at the SALT forum.
“Crypto is the mother and father of all bubbles,” Roubini said (via CNBC). “[The term] cryptocurrency is totally a misnomer. To be a currency, you have to be a unit of account, valuable, and a scalable means of payment.”
Roubini said crypto evangelists are essentially con artists who are deluding themselves and others. Why? Because bitcoin can’t scale efficiently, is too vulnerable to “massive manipulation,” and is too volatile to be a stable store of value.
“I’ve never seen such a level of manipulation. The reality is, these are not currencies.”
Novogratz: ‘Debate is over, bitcoin has won’
On the other end of the spectrum is Mike Novogratz, a Goldman Sachs alum and former hedge fund manager. Novogratz is the founder of crypto merchant bank Galaxy Digital.
Novogratz said Roubini is underestimating the crypto industry and is overlooking its vast potential. Moreover, Novogratz said bitcoin has proven that it has staying power, so perma-bears like Roubini have lost the debate.
“There’s a tremendous amount of stuff going on [beneath the surface]. In some ways,…