According To Experts: Bitcoin Is No Better Than The Stone Age Financial System

Bitcoin is predicted to decline drastically (Business Insider)

JAKARTA - The phenomenon of bitcoin that continues to skyrocket attracts the attention of many people from various circles. Coupled with influential people buying up the cryptocurrency.

The cryptocurrency has touched the number of 50 thousand US dollars per bitcoin, this is an increase from the previous day so that investors began to look to this cryptocurrency as a lucrative investment tool. However, an observer has a different view regarding bitcoin.

According to Nouriel Roubini, an economics professor who is commonly known as Dr. Doom, revealed that the stone age financial system is still better than bitcoin. In 2006, Roubini predicted that there would be a crisis in the housing market in the United States (US).

His prediction was very precise. The financial crisis occurred in 2008 as a result of the bubble in the housing market in Uncle Sam's country. After that, Roubini got the nickname Dr. Doom.

In an interview with Bloomberg, Roubini will also make an interesting statement. According to him, Flintstones (an old film about stone age life) has a better financial system than cryptocurrency.

“Fundamentally, bitcoin is not a currency. It is not a unit of account, nor is it a measurable means of payment, and is not a stable store of value," said Dr. Doom as quoted from Business Insider.

Roubini also added that bitcoin can only make 5 transactions per second. This is inversely proportional to the Visa network which can perform 24 thousand transactions every second. Not only that, but he also said that bitcoin's extreme volatility could lose its value very quickly.

"Calling it a cryptocurrency is a mistake, it's not even an asset," said the figure nicknamed Dr. Doom.

Roubini revealed that bitcoin was nothing because a monetary system in the Stone Age was still better than virtual money. Roubini called the Flinstones a phenomenal comparison of the cryptocurrency. When Dr. Doom said that, bitcoin actually increased to the highest number.

He said that the higher bitcoin price was due to massive manipulation. Therefore, bitcoin is already in a bubble. The statement is in line with the observer from Bank of America, Michael Hartnett who said the same thing that bitcoin is the "mother of bubble."

“The recent bitcoin rally could be another case of speculation mania. Bitcoin looks like the 'mother of bubbles'," said Hartnett as quoted by CNN Business, on Friday, February 8.

Hartnett only cited this incident when the price of gold skyrocketed to 400 percent in the late 1970s, and the Japanese stock market in the late 1980s, and the dot-com bubble occurred in the late 1990s. Since 2019, Hartnett has seen bitcoin's increase of up to 1,000 percent. This jump is very extreme and higher than the number of assets that have bubble.

Not only Dr. Doom and Hartnett who said the same thing. JP Morgan warned that the current price of bitcoin will not last long. He also added that there is a possibility that the value of bitcoins will decline sharply.

"In our opinion, unless the volatility of bitcoin decreases rapidly, the current price looks unlikely to last long," said JP Morgan as quoted by Business Insider.

Hartnett sees that the capital inflow to a country is still small. This is what he is based on, that it is possible for the value of bitcoin will decline, its high increase is only temporary.