Nouriel Roubini may have a mixed record in investment advice, but he is a pretty famous economist. (During the Clinton Administration, he was the Senior Economist for International Affairs in the White House’s Council of Economic Advisers.)
In a recent article for “Project Syndicate,” he gave several arguments against investing in cryptocurrencies. Namely:
- cryptocurrencies fail at the three functions of money, because they do not provide a standard unit of account, a widely accepted means of payment or a stable store of value;
- they are not fixed in quantity, because new coin issues take place frequently;
- demand for them is primarily speculative;
- they have no intrinsic value, even compared with fiat money (which can at least always be used to pay taxes); and
- since their primary actual use is to skirt laws, they will face increasing regulatory pressures.
This forum seems like a good place to look for responses. Any comments? Here is a link to the article: