Bitcoin received some criticism from the economist some call "Dr. Doom". Nouriel Roubini took to Twitter to say the virtual currency isn't actually a currency. He also called it a “Ponzi game,” said it is a conduit for criminal and illegal activities and that it isn’t safe because it has been hacked.
In a series of tweets, Roubini said Bitcoin is not a unit of account because no prices are set in Bitcoins and never will be. "So it isn't a currency,” he said. Roubini also criticized some Bitcoin supporters tweeting, “BTCbugs like gold bugs are fanatics who speak of BTC in cult-like religious ways. Like gold bugs they have paranoid conspiracy views on the [dollar].”
Yahoo Finance Columnist Rick Newman says Bitcoin has a lot of problems. He says it’s going to have to become accepted in the mass market if it’s going to be a currency. He wonders, though, what ordinary consumer would use it? “You can’t predict its value from day-to-day. It can get hacked. Nobody really understands how it even is created. And you don’t store it in a normal bank. You store it in these exchanges that just can go poof overnight,” Newman said.
What do you think of Roubini's comments? Do you agree with Roubini and think Bitcoin is a “Ponzi game?” Cast your vote in our poll and leave a comment as well.
- Nouriel Roubini