Economist and well-known Bitcoin critic Nouriel Roubini said that following the electric car maker’s recent decision to include Bitcoin on its balance sheet, the US Securities and Exchange Commission, “looking to people” like Tesla’s CEO Elon Musk for manipulating the market.
For the past few weeks, Musk has been tweeting about Bitcoin and Dogecoin and at a point updated his popular Twitter profile bio to “#bitcoin”. Tesla filed its annual 10-K report with the US Securities and Exchange Commission on Monday, stating that it purchased approximately $1.5 billion worth of bitcoin (BTC, -5.76%) in January.
The professor of economics at New York University also criticized MicroStrategy CEO Michael Saylor for his “irresponsible behaviour” as the company converted a large part of the cash reserves for business intelligence to bitcoin because of the volatility of the cryptocurrencies. MicroStrategy currently holds 71,079 BTC, according to records filed last week by the US Securities and Exchange Commission.
Roubini predict Bitcoin could collapse this year
Roubini warned in an interview on CoinDesk TV’s “First Mover” that Bitcoin could “collapse” if Tether (USDT) stablecoin issuer Tether and cryptocurrency exchange Bitfinex are sued this year. Tether (USDT, -0.06%) has a staggering market cap of $31 billion and is currently the subject of multiple investigations, including the U.S. Department of Justice and the New York Attorney General’s Office. The core of the Justice Department’s criminal investigation against Tether as an organization is whether or not USDT is used to inflate the cryptocurrency markets.
Bitfinex announced on Friday that it had repaid the balance of the $550 million loans from its sister company, Tether. In 2018, the exchange borrowed more than $600 million from Tether and shared executives and owners with Tether. After the New York Attorney General’s Office accused Bitfinex of selling $850 million in client and corporate funds to payment processor Crypto Capital Corp. Having lost and used funds in Tether Reserves to secretly close the gap, the transaction was announced in April 2019.
Roubini predicts that at some point the world will “phase out cash” and the United States will create an “electronic dollar”. He said the central bank’s digital currency will allow central bankers to quickly manipulate monetary policy in times of economic crisis and normalize negative rates.