It’s certainly true to state that the media frenzy surrounding cryptocurrencies and in particular, Bitcoin in the last few months has tailed off somewhat. At the turn of the year, you only had to mention the words ‘Bitcoin’ or ‘Cryptocurrency’ and a whole lot of press attention would ensue. There was even talk of bringing cryptocurrencies into the mainstream financial sphere at one point, but since then, things have cooled off.
The slowing of the crypto market should not however be confused with a collapse, as what we’re currently seeing a significant decrease in volatility. Ordinarily speaking, on the traditional fiat markets, stability would be seen as a desirable state of being, but cryptocurrencies have been a victim of their own considerable success in recent years, with any slowdown being viewed as a failure by crypto critics.
Nouriel Roubini aka Doctor Doom
American economist, Nouriel Roubini, who has been dubbed Doctor Doom, is one such critic and has been for some time. Historically, he’s never been shy of sticking the boot in, to Bitcoin in particular. He famously once stated on social media that “Bitcoin Must Die” and he’s been up to his old tricks in recent days, offering up a raft of reasons why cryptocurrency is a dying phenomenon. This has been lapped up by those who share his views, especially as his opinions are backed up by a study coming out of Princeton University.
Whilst his utterances may contain some truths, the fact that no one can truly say that they know what’s going to happen, has gone a long way to galvanizing the cryptocurrency community against Roubini, sparking something of a social media war of words. It has not yet descended into the realms of name calling as yet, but we wouldn’t rule it out at some point.
What shouldn’t be overlooked is the irony of the situation. By kicking up a storm, the likes of which we haven’t seen since the beginning of the year, Doctor Doom has created media attention around Bitcoin, helping to generate interest and bolster its market price - seemingly the last thing that he would want.
It’s no surprise that as we head towards the last few months of 2018, the relative stagnancy of the market is resulting in Bitcoin Bashers coming out of the woodwork, as they were hardly likely to be around in such force when Bitcoin was breaking records earlier in the year.
The fact is that Doctor Doom or whatever he likes to be called, does not have a flawless record when it comes to making bold predictions about the financial markets. He has been wrong before, so the old adage of a broken clock being right twice a day, springs to mind.