Bitcoin has been having one of its worst months ever. This has drawn also of views from experts with some calling the current price drop a price correction while others see it as a bubble burst. The latest opinion is from Nouriel Roubini who is an economics professor who stated that the Bitcoin price was the biggest bubble in human history when the price was surging very high.
In the last year Bitcoin price had rapidly raised to almost $20,000. This was because of the influence of the fear of missing out. Many people and institutions bought portions of the currency believing that the price would keep going up. However, Professor Nouriel Roubini who lectures at the New York University has claimed that the fundamental value of Bitcoin is zero. The professor went on to state that cryptocurrencies are nothing but a scam.
This criticism comes during a time when Bitcoin has already lost more than half of its value. This price drop did not affect Bitcoin alone, the entire cryptocurrency market is affected. People and especially in Asia are selling the digital currencies heavily because of regulatory talk in most of the countries with some threatening to ban virtual currencies completely.
According to Roubini Bitcoin’s bubble will eventually burst bringing the Value of Bitcoin to zero. The price of Bitcoin could recover in the short term but the long term will be a disaster. It’s seen that many countries will either ban the currency or regulate these digital currencies to protect their citizens and their banks too. There is also an option of countries launching their digital currencies to compete with Bitcoin and the other existing digital currencies.
It’s not only professor Nouriel Roubin who has predicted the collapse of Bitcoin. There has been previous predictions by Wall Street analysts that Bitcoin price would go up to the $60,000 market before crushing all the way to below $1,000. Its however hard to predict Bitcoin’s future since the currency does not have a central governing body.