‘Dr. Doom’ economist Nouriel Roubini says bitcoin is not a hedge against inflation and investors are ‘feeding the bubble’

SourceBusiness Insider
SectorFinancial Markets
CountryMiddle east

Nouriel Roubini, an economist known as "Dr. Doom" for his bearish views, said bitcoin is not a hedge against inflation and investors are "feeding the bubble" in an interview with Yahoo Finance on Monday.  "If people were really worried about inflation they would diversify in a wide range of assets that are historical good hedges against inflation. That's not happening," Roubini said. "People say bitcoin's a store of value against tail risk, but in February, March of last year when US stocks went down, say 35%, bitcoin was not a hedge, it went down by 50%" the economist added. "The reality is that no one knows what the value of this pseudo-asset is." Roubini has long been a critic of digital currencies, but after bitcoin hit a $1 trillion market cap last week the NYU professor has renewed his bearish calls.  Roubini said he sees the digital currency as a volatile "pseudo-asset" and argued much of the price movement "is driven not by worries...read more...