Roubini believes that Bitcoin is the mother of all scams and makes fun of NFTs. The economist even recommends accusing Nayib Bukele of ruining El Salvador by adopting BTC as legal tender.

Nouriel Roubini is an economics professor at New York University Stern School of Business and CEO of Roubini Macro Associates. He recently stated Bitcoin was the mother of all scams and made fun of NFTs by saying cow dung would become one of them.

The economist was born in Istanbul, Turkey, in 1958 and has gained notoriety for his accurate predictions. He focuses on the international recession triggered by the mortgage crisis, also known as subprime, which earned him the nickname Dr. Doom.

His constant pessimistic behavior and thoughts on economic issues make that nickname fit him perfectly.

Roubini Considers that Bitcoin Is the Mother of All Scams

The Turkish executive, who does not support the crypto world, has shared his thoughts on Twitter. In 2018, he called the leading crypto asset the mother of all scams. Two years later, he referred to cryptocurrencies as a misnomer, as they must have a unit of account to be currencies.

He recently expressed that Bitcoin is around USD 36,000, nearly 50% lower than its November price. He recalled that some analysts predicted that it would now be at USD 100,000, USD 200,000, and USD 400,000. In addition, he said that it must be painful for the retailers who bought it when it was trading at USD 69,000.

Roubini also commented that Bitcoin is not a hedge against inflation nor a correction of risk assets.

The Economist Believes that NFT is the Mother of All Tulips

The Bitcoin network has existed since 2009, but its comparison to the tulip bubble continues. Referring to the cryptocurrency, British economist Gabriel Makhlouf stated that people put money in tulips three hundred years ago. The British economist and member of the Council of the European Central Bank highlighted that they thought it was an investment.

Nouriel Roubini makes fun of non-fungible tokens (NFTs) by saying they are the mother of all tulips and will crash similarly. Besides, he remarked that creators put every piece of junk video or pseudo-art on NFTs. He even considers that good art like the work of Piero Manzoni and cow dung will become NFT.

Nouriel Roubini Thinks Nayib Bukele Is a Criminal President

The economist recently said that Nayib Bukele should go to court for bankrupting El Salvador with his Bitcoin law.

On Twitter, Roubini stated El Salvador did a disastrous experiment by adopting Bitcoin as legal tender.

He believes that those who had Bitcoin lost 50%, the spread is through the roof, and the State is on the verge of bankruptcy. He even recommends impeaching Nayib Bukele for ruining the Central American country.

Pessimistic analysts like Roubini lash out at Bitcoin and NFTs, while others consider this is a good time to invest and become rich. For example, Robert Kiyosaki and Wily Woo recently said that its fall by 50% below its all-time high is a bargain.

Of course, both experts agree that Bitcoin is an excellent long-term investment, so they advise buying the dip. They predict that the price might soon resume its bullish trend.

By Alexander Salazar

Bank of America considers that stablecoins will enter a period of increased adoption in the United States. The Fed published a document that does not establish a position on whether or not the US will adopt CBDCs.

According to the Fed, digital means of payment and central bank digital currencies (CBDCs) offer potential challenges and opportunities. In that regard, Bank of America considers that the arrival of the digital dollar is inevitable for the United States.

Alkesh Shah and Andrew Moss, strategists of the Bank of America cryptocurrency research team, talked on behalf of the entity.

Bank of America said that the United States could have its CBDC between 2025 and 2030. Therefore, it might lag a little behind other world powers like China that have progressed in regulating their centralized digital currencies. The banking institution considers that CBDCs are an inevitable evolution within the economy of a State.

In addition, it will be necessary to wait while the implementation of a CBDC for the digital dollar progresses. That has led the Bank of America to say stablecoins issued by private entities may grow strongly within the United States. At the moment, several financial entities in the country could be getting ready to launch their stablecoins.

Despite that initiative, regulations may hamper the growth of those stablecoins. A bill announced in December 2020 could ban them within the United States, excepting those issued by federal banks. However, several movements occurred throughout 2021 to push for improvements in regulations rather than prohibiting their use within the country.

The position of Bank of America on CBDCs and stablecoins is direct. Concerning Bitcoin (BTC), the bank described in March 2021 the pioneering cryptocurrency as impractical and volatile.

The United States Will Not Ban Bitcoin to Launch Its CBDC

The Chinese government applied an aggressive strategy to ban Bitcoin in the territory for launching the digital yuan. They persecuted miners, alleging that their activity harmed the environment, and they even outlawed all transactions with the crypto asset in the country.

The Fed does not show a closing position regarding the use of Bitcoin and other cryptocurrencies within the United States. However, they are concerned about the possible impact of the use of CBDCs. Besides, the current chairman of the Federal Reserve, Jerome Powell, has stated that the country does not intend to ban decentralized crypto assets.

The authorities have not shown any intention to prohibit them, but companies in the cryptocurrency sector are in legal limbo due to the lack of clear regulations.

The above has forced different companies to exert pressure in the corresponding areas. In that way, they seek to define the regulatory framework for Bitcoin and cryptocurrencies.

The opportunities offered by digital means of payment have made CBDCs and stablecoins relevant among financial institutions. However, the authorities need to establish clear regulations to allow companies of that sector to work without banning decentralized cryptocurrencies.

By Alexander Salazar

The director of the SEC, Gary Gensler, worked as a professor of Bitcoin at MIT. In 2021 the SEC approved the first bitcoin futures ETF in the United States of America.

The United States Securities and Exchange Commission (SEC) appears to be going through one of the most permissive moments towards bitcoin and cryptocurrencies in the nation. Gary Gensler, who worked as a professor of bitcoin and blockchain chairs at the Massachusetts Institute of Technology, took over as director of the commission in April 2021.

According to the information given by the Economic Research firm Cornerstone Research, in 2021, the SEC observed a reduction in legal actions against cryptocurrency projects, which grew since 2017.

In 2021, the SEC executed at least 20 legal actions, of which 14 got directed against initial offerings of cryptocurrencies (ICO). According to the report, of the total actions, 14 were brought to trial, while six went through administrative procedures carried out by the commission itself.

Regarding the administrative processes, Gensler has previously stated how the SEC has enough power and authority to regulate cryptocurrencies, emphasizing the regulation of investment platforms such as exchanges.

The report also shows how the SEC keeps feeding its position against fraud, executing a total of ten complaints in 2021 against this type of activity. On the other hand, the SEC sealed a total of 16 complaints against scams in which any crypto asset was involved.

Since the first case got registered in 2013 in which bitcoin was part of a ponzi scam, the SEC managed to apply a total of 123 legal actions, which ended up being more than USD 2.3 billion in fines.

According to the data from Cornerstone Research, the SEC appears to be setting a position of user protection and not prohibition. This position is in line with what got stated by Gary Gensler, who confirmed that the United States of America would not prohibit bitcoin and cryptocurrencies, as China did.

The Regulatory Bills in the United States of America

The United States of America is currently going through a high-pressure regulatory environment. But not by government entities, but by companies, who are the ones that have been most demanding to clarify the regulatory landscape.

Recent reports have shown how companies managed to experience an increase in spending on lobbying and donations for electoral campaigns.

These companies gained the opportunity to bring discussions regarding the regulation of cryptocurrencies to the highest political elites of the North American country.

While China, and recently Russia, seem to reject bitcoin and cryptocurrencies more than ever, in favor of clearing the way for CBDCs from these countries, the United States of America does not want to run on the same road.

By: Jenson Nuñez

The Salvadoran portfolio counts on $20 million in unrealized losses. Bukele has acquired 1,800 bitcoins at an average price that circles $48,000 per unit.

The current balance of bitcoin (BTC) acquisitions revealed by President Nayib Bukele in El Salvador is not as positive as it seems. Although the “losses” will not appear until he sells, Bukele’s portfolio is currently in red figures.

After a new purchase of at least 410 bitcoins at an average close to 36,500 dollars per unit, El Salvador’s BTC reserve stands at a figure of 1,800 units of the first cryptocurrency. The average purchase price would linger around $48,000, according to data from @SalvadorTracker, a Twitter account focused on tracking Bukele’s portfolio in the Central American country.

According to the same source, this purchase would be the president’s first acquisition below the 40,000 per BTC mark. The purchase took effect at the end of last October when he acquired420 bitcoin with the cryptocurrency trading over $60,000 on exchanges.

The president of the first nation that accepted bitcoin as legal tender would have invested about 86 million dollars in installments to date in eight purchases. With the price now at a figure registered in $35,700, about $64 million today’s value of that stock, the loss in value exceeds 25% at this time.

Bukele’s purchases began alongside the establishment of the Bitcoin Law in El Salvador. At that time, the purchase was around 400 BTC at a price of over $50,000. Since then, the Salvadoran leader has maintained an invasive policy of purchasing cryptocurrency.

Irresponsible Management Regarding Bitcoin in El Salvador

While the bitcoin world celebrates Bukele’s accumulation policy, not everything is easy for Salvadorans. At some point last year,  the Salvadoran portfolio seemed to be showing green numbers, and the current president highlighted that the profits would serve to build a veterinary hospital and fix at least twenty schools.

Although the money for these works would come from a fund supported by bitcoin but held in dollars, some wonder what could have happened to that money now that bitcoin has crumbled down.

Bukele also spoke about other benefits that, according to what he expresses, El Salvador has due to the acquisitions of bitcoin as legal tender. Specifically, he pointed out the possibility of receiving remittances from abroad without paying additional commissions.

The trust that Bukkele highlighted is a fund of USD 150 million that served to automatically and instantly convert bitcoin to dollars for Chivo Wallet users.

That announcement that Bukele made regarding the creation of these works caused some debate between those who celebrated the decision and those who considered that it was not the best destination for public money.

By: Jenson Nuñez