Many experts supporting tradfi have been crawling out of the woodwork to slam on the crypto industry in light of the recent events related to a certain crypto exchange that we should not name.
However, the collapse of a single company forced many other CEX platforms to focus on stabilizing their businesses and go out of their way to prove that they are solvent and have solid books.
Despite the two rocky weeks, the industry held on to its market cap and avoided catastrophic bearish movements indicating that the foundation is strong and such mishaps cannot shake it too hard.
However, these periods of instability and uncertainty immediately draw attention to those who have a pessimistic outlook on the whole crypto industry.
Roubini is a respected… Guy…
Nouriel Roubini is an economist who has a long history of scandalous yet wrong predictions about the global economy. While his academic achievements and experience are nothing to scoff at, his recent takes have been questionable at best.
In his articles on Axios, the expert claims that the crypto industry does not have any future due to inherent risks. As an example, he is talking about the 2008 financial crisis caused by reckless investments in speculative instruments.
What he is failing to mention is that Bitcoin is exactly the answer to issues that were caused in the long term by the overreaction of the Fed.
The current state of affairs in the crypto domain is one full of experimenting and taking risks. However, with wider adoption and more implementation, Bitcoin has a stronger potential than fiat to withstand future challenges.
The industry is prone to sudden collapses
Indeed, investing in crypto is still a risky endeavor. However, it is true only when we are talking about obscure DeFi platforms and sketchy companies that promise more than they can deliver.
Bitcoin and Ethereum both have solid foundations and won’t collapse under any circumstances.
The argument by Roubini that the industry has embedded risks is a weak one because we all see what has been happening in the real estate industry for decades and led us to the worst financial crisis in history!