The crypto market has been suffering losses since the start of the year. In fact, a lot of people are still waiting for the crypto market to recover. In 2018, things weren’t exactly good for the price of most cryptocurrencies. The bearish market is mainly because of regulatory changes since Bitcoin almost reached near $20K in December.
Recently, the International Monetary Fund issued a warning regarding the possible risks of cryptocurrencies, while the likes of economist Nouriel Roubini, better known as Dr. Doom for his correct prediction of the 2008 financial crisis, has called cryptos the “mother or father of all scams and bubbles”.
But of course, he isn’t stopping here. Following the IMF warning, the crypto market lost $13 billion in just a matter of three hours.
Crypto World a “Stinking Cesspool”?
Nouriel Roubini isn’t exactly stopping. He continued tweeting his thoughts regarding the crypto market. He even called the crypto market as a “stinking cesspool”. He said in a response to a Twitter user that “The bloodbath is worsening”. He said that “So tell me: which better fundamentals? Can’t convert s—coins into productive manure”.
He also pointed out that the market has lost a significant amount since the start of the year. He said in his tweet that “Which fundamentals are improving after a 70-99% implosion? Yesterday US Stocks were down 3% major cryptocurrencies- ETH, XRP, etc- plunged another 10%”.
Critics of Cryptos
Warren Buffet and Bill Gates are also among high profile critics of Bitcoin and the crypto market. In fact, Warren Buffet even considered Bitcoin to rat poison while Bill Gates gave a statement that he would “short Bitcoin” if he could.
Prior to the more recent drop in Bitcoin’s value along with other cryptocurrencies, Bitcoin was actually becoming stable. Many are pointing different reasons for this. There are those who think that Bitcoin’s stability is due to the possibility that the market is actually maturing. There are also those who think that the market is waiting for cryptocurrencies to have another bull run considering the possibility of a Bitcoin ETF.
The US Securities and Exchange Commission has been looking closely at different crypto-related ETF applications. Though the agency denied a number of Bitcoin ETF applications including that of the Winklevoss twins, the one submitted by Solid X and VanEck seemed to have the strongest chance of getting approved.
A Bitcoin ETF is believed by many to attract institutional investors to participate in the crypto market. This would make it easier for institutional investors to dabble with Bitcoin without buying Bitcoin itself.
Are they correct after all? Considering the value lost since the beginning of the year, is the crypto market really a bubble and now it has imploded? Roubini thinks that blockchain as well is not a useful piece of technology. He also explained that the internet is quite different from that of cryptocurrencies and blockchain tech. He said that 10 years after the internet became available to the general public, around 1 billion people are already online. As for Bitcoin, even after 10 years, only 22 million are using cryptocurrencies today.