If you're looking for a crypto cheerleader, Nouriel Roubini isn't your guy. The renowned economist, who earned the nickname "Dr. Doom" for correctly calling the 2008 financial crisis, has doubled down on his bearish cryptocurrency stance in a new op-ed titled "The Coming Crypto Apocalypse."
The Digital Gold That Wasn't
Writing in Project Syndicate, Roubini noted that many people were optimistic when President Donald Trump took office, given his pro-cryptocurrency position. Expectations ran high that Bitcoin (BTC) would emerge as "digital gold," with predictions of values hitting at least $200,000 by the end of 2025.
"Moreover, crypto was supposed to benefit from various macro and geopolitical risks, such as the ballooning of U.S. and other advanced economies' debt and deficits; the debasement of the dollar and other fiat currencies," the longtime crypto skeptic wrote.
Reality delivered a different verdict. While gold climbed more than 60% last year, Bitcoin dropped 7%, Roubini pointed out.
"Bitcoin and other cryptocurrencies' latest plunge further underscores the highly volatile nature of this pseudo-asset class; one only hopes that policymakers will wake up to the risks before it's too late," he added.
Stablecoins: The Next Crisis Trigger?
Roubini's concerns extend beyond Bitcoin's volatility. He argues that decentralized finance "will never reach scale" and that no government, including the Trump administration, would permit full anonymity in financial transactions.
More alarmingly, he warns that stablecoins—recently regulated through the GENIUS Act—threaten the foundations of traditional banking and could potentially spark bank runs.
