Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
NYU Stern School of Business professor Nouriel Roubini spent Sunday morning blasting Bitcoin five times, in under 140 characters.
Roubini explained through Twitter why he thinks Bitcoin isn’t a currency and is a Ponzi scheme.
Apart from a base 4 criminal activities, Bitcoin is not a currency as it is not a unit of account or a means of payments or store of value
— Nouriel Roubini (@Nouriel) March 9, 2014
Bitcoin is not a unit of account as no price of goods and services is set in Bitcoin unit nor it ever will. So it isn’t a currency — Nouriel Roubini (@Nouriel) March 9, 2014
Bitcoin isn’t means of payment as few transactions in Bitcoin. And given its volatility all who accept it convert it right back into $/€/¥ — Nouriel Roubini (@Nouriel) March 9, 2014
Bitcoin isn’t a store of value as little wealth is in Bitcoin and no assets in it. Also given price volatility it is a lousy store of value
— Nouriel Roubini (@Nouriel) March 9, 2014
So Bitcoin isn’t a currency. It is btw a Ponzi game and a conduit for criminal/illegal activities. And it isn’t safe given hacking of it.
— Nouriel Roubini (@Nouriel) March 9, 2014
Roubini’s Tweets may anger the Bitcoin crowd but the economist is probably used to it, having incurred the wrath of gold bugs many times.
He’s written before that currencies serve three functions: “providing a means of payment, a unit of account, and a store of value.”
Since, according to Roubini, gold doesn’t meet the first two conditions, it should only make up a small portion of an investor’s portfolio.
