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Investing.com – Renowned economist Nouriel Roubini, renowned for his doomsday predictions and criticisms of cryptocurrencies, commented on the currently delicate situation yesterday, and assessed its implications.
In an interview with Stansberry Research, Roubini claims that the cryptocurrency ecosystem has many bad actors and that the end of the asset class is near.
According to Mr. Roubini, cryptocurrencies cannot fulfill a role of store of value and are “very risky”.
“It’s very risky. The lesson of the past year and a half is that crypto is extremely dangerous. There are so many scammers, so many frauds. You know that SBF and FTX are not an exception – it’s the rule”, he said.
He also opined that “this whole crypto house of cards is falling apart,” adding that “if you want your wealth to be safe, the last place you want to be is in cryptocurrency.”
Note that it seems to have escaped Roubini that cryptocurrencies are so far the asset class (with ), which best resists the current wind of panic on the markets.
Highlighting the high volatility of and cryptocurrencies in general, Roubini also implied that the failures of Silvergate Bank and Silicon Valley Bank were due to their exposure to the cryptocurrency market and industry:
“We’re talking about Silicon Valley Bank. But guess what? Last week, two big cryptocurrency banks went bankrupt. Silvergate and now Signature Bank. Because they were doing, again, toxic things and the people who had their deposits may or may not be bailed out.”