Bitcoin will never be 'digital gold' and Central Bank Digital Currencies will kill cryptos - Roubini
Valuations in risk assets continue to climb, which only strengthens the argument for rotating capital into defensive assets, such as gold, ahead of a potential market correction, said economist Nouriel Roubini, CEO of Roubini Macro Associate and professor at the NYU Stern School of Business.
Roubini cited several potential triggers for such a market correction.
"One thing that could happen is rising inflation is persistent. Second one is a taper tantrum if inflation is higher, and the Fed decides to really start tightening monetary policy. Another one that could happen is that growth could surprise on the downside, maybe not in the United States, but we're already seeing a double dip recession in the Eurozone," Roubini told Michelle Makori, editor-in-chief of Kitco News.
One such asset that is clearly in bubble territory is Bitcoin. Roubini said that the word "cryptocurrency" is a misnomer, as it is clearly not a currency, and also fails to hold up the definition of an asset.
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