Dr. Doom compares BTC with Casino
Is Bitcoin manipulated? – Dr. Doom compares BTC with Casino
Professor Nouriel Roubini is known by his nickname Dr Doom. The economist and professor at New York University is a respected expert and has already advised the US Treasury. Now Roubini said that he considers Bitcoin Crypto Engine to be the most manipulated asset ever. So let’s take a look at what founders Dr. Doom calls
manipulated Bitcoin? – Nouriel Roubini on BTC
The Bitcoin Bullrun of the last days was undoubtedly very fast. As we already reported, BTC managed to increase its share price by 80% within a short period of time.
The consequence of such rapid growth, which is not organic, is often a price correction. As a result, we also saw a correction in the Bitcoin price, which pushed BTC from around $19,500 towards the $16,000 mark.
After this, Roubini commented on the Bitcoin correction and said that it was mainly individual investors who suffered from this phenomenon.
13% correction in Bitcoin. It is the most manipulated asset ever. The higher it rises, the more it falls. FOMO private investors are losing through whales just like in 2018.
Timothy Peterson, who is best known as a crypto analyst, commented on the statements of economist Roubini. Peterson said he often disagreed with Roubini, but shared Dr. Doom’s opinion on this point.
13% down. Most manipulated asset ever. As I said they higher it goes the harder it will fall. FOMO-salivating retail suckers hoodwinked by manipulative whales will get shafted as in 2018!
Bitcoin slumps after rallying to all-time high https://t.co/d7zg5nRJ09 via @financialtimes
– Nouriel Roubini (@Nouriel) November 26, 2020
There is one aspect in particular that we must intensify. From my personal perspective, I agree with the statement that private investors in particular will suffer from such a correction. The rationale:
Unpleasantly, poorly informed investors only rush into the market when Bitcoin is in the headlines. Instead of acting smart and achieving the best possible average price with the help of a savings plan, inexperienced investors invest a large one-off sum after an 80% rally, which was also very short.
The consequence: instead of maintaining a long-term investment horizon, as should be the case for all risky asset classes, panic spreads. A short-term correction of 10 percent or more looks painful when looking at the absolute figures of the portfolio. In the worst case, uninformed investors will immediately sell again.
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Is Bitcoin like going to the casino?
Roubini also said that Bitcoin is not a real investment for institutional investors. Rather, he said, Bitcoin is a whale that exploits the position of the ignorant individual investor.
Bitcoin does not play a role in institutional portfolios. It is not a currency: not a unit of account, not a means of payment and not a store of value. Having BTC in your portfolio is like going to the casino.
We have to disagree on this point, because Bitcoin is obviously an important part of the portfolio for many institutional investors.
We substantiate this argumentation, for example, with the high demand for Grayscale products or with statements by Wall Street veterans such as hedge fund manager Paul Tudor Jones or Druckenmiller.
The fact that listed companies are shifting parts of their liquidity into the asset Bitcoin is probably another point in favour of Bitcoin.