'Bitcoin on its Way to Zero,' Professor Claims: Won't Gloat Though After This Week's Plunge

Nouriel Roubini, currently a professor at the New York University Stern School of Business, was quick to speak out following Bitcoin’s 13 percent drop overnight midweek.

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“I could gloat about Bitcoin collapsing 10% in a day to $5700. But that is still some way to ZERO where Bitcoin belongs. Actually since Bitcoin is The Mother of All Toxic Pollutions & Environmental Disasters its true fair value is highly NEGATIVE with the right externality tax.”

One of the few who correctly predicted the economic collapse in 2008, he has referred to Bitcoin as “the mother of all scams and bubbles.”

Bitcoin has thrived in the online gambling and marijuana space, industries where banks are hesitant to enter.

The Bitcoinist writes:

While it’s true that bitcoin collapsed 10 percent this week, it’s the only verifiable fact in the professor’s statement. Meanwhile, Bitcoin has been growing with 0.347 percent per day on average since January 1st, 2011 – something which the professor conveniently ignores.

Another glaring omission is the Bitcoin network having an uptime of 99.98%. In other words, confidence in this nascent, neutral, global monetary network is only expected to increase with expanding hash rate, particularly in the wake of the 2008 financial crisis.

- Aaron Goldstein, Gambling911.com