Bitcoin and the rest of the cryptocurrency market continue to trade at the lowest level of this year. And some market analysts are expecting the complete crash of crypto markets.
Nouriel Roubini, who is also known as Dr. Doom, predicts bitcoin price will eventually fall to zero. The market is giving importance to Nouriel Roubini’s comments because he had accurately predicted 2008 financial crisis.
“If it all sounds funereal it is because Bitcoin and all other crypto-currencies are on the way a funeral march!” Nouriel Roubini says.
Besides from Dr. Doom, several other prominent market players see the extension of downside movement in the following months. For instance, UBS’s Global Wealth Management’s chief economist Paul Donovan recently stated that ‘Bitcoin is on a death spiral.’
“The underlying technology of blockchain, the distributed ledger system – that’s different. He went on pointing, “There’s an economic proposition there; again, there’s a certain amount of hype around it, but to go from that to ‘Bitcoin is going to replace the dollar’ is quite a leap,” Paul Donovan said.
Market analysts are criticizing bitcoin and the rest of the cryptocurrency market due to several reasons. These elements include a lack of intrinsic value, the potential to work as an asset and medium of exchange. Lack of backing from any real asset or currency is among the factors that are leading analysts to reject cryptocurrencies.
Bitcoin (BTC) Price Today – BTC / USD
Donovan stated: “I think anyone with high school education in economics has been a Bitcoin skeptic right from the start,” adding, “These things were never going to be currencies, they’re not going to be currencies at any point in the future; they’re fatally flawed.”
Bitcoin Fail to Work As Medium of Exchange
Bitcoin was originally invented to outperform fiat currencies. The inventors had thought that centralized nature off electronic currencies would work as a better medium of exchange and store of value. However, the huge amount of volatility in cryptocurrency markets and bitcoin price has been reducing its potential to work as a medium of exchange.
Bank of England Governor Mark Carney had also rejected bitcoin’s potential to work as a reliable medium of exchange. He stated: “It has pretty much failed thus far on … the traditional aspects of money. It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange.”
Analysts have also been raising questions over the anonymity feature of bitcoin; they believe bitcoin is helping criminals and money launderers to transfer their money from one place to other.
The debate is still on about the crypto coins potential to work as a medium of exchange. Indeed, the regulators and market players didn’t yet agree on either crypto coins are assets or securities. SEC claims that some digital currencies are asset and others are securities.