NYU Professor Nouriel Roubini, also known as Dr. Dom warned that “99.99% of cryptocurrency is a scam, a criminal activity, and a true all-out bubble Ponzi scheme that is going bankrupt.” He advised investors to “steer clear of” cryptocurrencies, claiming that most people in the digital currency space are “scams.”
Doctor. Doom warns that almost 100% of cryptocurrency is a scam
Economics professor Nouriel Roubini, also known as Dr. Doom warned against cryptocurrency in an interview with Yahoo Finance Live Wednesday at the World Economic Forum in Davos, Switzerland.
Roubini is Professor of Economics and International Business at New York University’s (NYU) Stern School of Business. He is also Chairman of the Board of Directors of Roubini Global Economics, a global macroeconomics and market strategy research firm that he co-founded. He told the news outlet:
Literally, 99.99% of cryptocurrency is a scam, criminal activity, and a real total bubble Ponzi scheme that goes bust.
Doctor. Dom also shared his opinion on the collapsing cryptocurrency exchange FTX and its disgraced founder Sam Bankman-Fried (SBF). FTX filed for bankruptcy last November and SBF is currently facing multiple fraud charges, all of which he has pleaded not guilty to. “FTX and SBF are no exception — they are a rule,” Roubini said.
The NYU professor set out to advise against investing in cryptocurrency. He stated that 99% of Bitcoin investors did not buy BTC at $1,000 or $10,000. Most of them got FOMO [fear of missing out] In 2021 when it was going from $20,000 to… $69,000,” he confirmed, stressing that 99% of bitcoin investors bought the cryptocurrency “far above the current market cap.”
“They’ve lost their shirts,” Roubini said. “It’s a nightmare.” Doctor. Doum noted that bitcoin investors are not alone in losing money as other cryptocurrencies are “down 90%, 95%.” He added, “Out of 20,000 initial coin offerings [initial coin offerings], 80% officially were a hoax and 17% went to zero. This means that 97% of them… were either a hoax or lost everything.”
Regarding investing in digital currencies, Roubini advised:
You have to walk away. You have to walk away completely. And most of these people literally belong in jail — literally, they’re all frauds.
The New York University economics professor has long been an outspoken critic of cryptocurrency, claiming that most cryptocurrency proponents are scammers. Binance CEO Changpeng Zhao (CZ) has been called a “mobile time bomb.”
Recently, US Securities and Exchange Commission (SEC) Chairman Gary Gensler warned that most cryptocurrency tokens will fail, urging investors not to FOMO in this asset class. Meanwhile, John Reed Stark, a former SEC executive, warned that the regulatory assault on the SEC was just beginning.
What do you think of the encryption warnings of NYU Professor Nouriel Roubini? Let us know in the comments section below.
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