In a recent bull market, economist Nouriel Rubini, professor at New York University, warned that “formo syndrome” (fear that everyone else would miss out on their own) would lead to frustration for individual investors jumping into bitcoin.
According to Yahoo Finance on the 23rd, Prof. Rubini pointed out in an interview that “as in December 2017, a lot of stupid people with Formo syndrome are entering Bitcoin investment.”
He warned, “They will experience the same thing from buying for $20,000, which peaked at the time, and then plummeting to $3,000 the following year.”
Professor Rubini said, “It’s the same now,” he said. “If you jump into bitcoin just because you’re falling behind others, it will grow bubbles (bubbles) and manipulation and eventually collapse.”
He argued that the surge in Bitcoin was not because of the risk distribution (hedge) for inflation, but because of the’massive manipulation’.
Professor Rubini explained, “Some of the reasons for the rise of bitcoin are not because of concerns about inflation or a decline in the value of fiat currencies as gold prices have not risen much, but because TIPS has not risen significantly.”
He also added, “Why is Bitcoin alone a hedge between inflation and fiat depreciation?” He added, “There’s something else, a huge manipulation.”
Prof. “Doctor Doom” Rubini, a leading Wall Street pessimist and predictor of the 2017 financial crisis, has argued that cryptocurrencies, including bitcoin, have no place in the portfolio of individual or institutional investors. This is because the volatility is too high.
“These pseudo-assets have no value, profit, use, or utility,” he said. “I have to ask myself whether individual investors or institutional investors should invest in something that is not so risky and neither currency nor assets.”
Bitcoin rose to $58,367 last weekend, then fell to $4,616 on the 22nd, and is currently trading at the $52,000 range.