Humans, like humans, tend to stick to their beloved faith – even in the face of overwhelming paradox. This is why disguise, that is, public action to disprove a previous opinion, is rare. This year, however, there have been several notable changes in the heart regarding bitcoin (BTC) and other cryptocurrencies – and this could trigger the rise of BTC to record price levels. Here are eight of the most memorable transitions of the year.
Nouriel Roubini, economist
The most vicious critics of cryptography will retire in 2020. Roubini, a professor of economics at New York University who became famous for predicting the 2007-2009 housing bubble, has ridiculed cryptocurrencies and blockchain technology in general in recent years.
What he said in 2018: Part of Rubini’s testimony to the US Senate circulated: “Crypto is the mother of all scams and bubbles (now trapped).” He also called blockchain “the most hyperbolic technology ever, and no better than a spreadsheet / database” – and that was just the title of his testimony.
During his visit to the Senate, Roubini compared Bitcoin “to other famous historical bubbles and hoaxes such as Tulip Madness, Mississippi Bubble and Southern Sea Bubble.” He noted that the rise in bitcoin prices was two or three times higher than in previous bubbles, followed by “crash and crash that followed quickly, rage and deeper.” At the time, Bitcoin was in a somewhat stagnant state and was sold for about $ 6,300.
What he said recently: In an interview on November 6, 2020, Rubleini admitted that Bitcoin, which was selling for about $ 15,500 at the time, could qualify as a “partial store of value”, largely due to an algorithm limiting supply to 21 million BTC … Of course, Roubini also announced that bitcoins are “not scalable, secure, decentralized, not a currency” and that they will become irrelevant or “crowded” within three years of the introduction of central bank digital currencies.
However, everything is relative. The partial refusal led economic historian Professor Niall Ferguson to comment: “If I loved to exaggerate like he [Roubini], I would call it the greatest entertainment since St. Paul.”
Stanley Druckenmiller, Investor
Investor and hedge fund manager Stanley Druckenmiller – the man who “broke the Bank of England” with George Soros in 1992 by investing in pounds sterling – seems to have abandoned his previous doubts about cryptocurrencies by 2020.
“I see Bitcoin as a solution to my problem,” Druckmiller told The New York Economic Club in June 2019. “I don’t understand why we need this thing. […] I don’t want to cut it, either. do not expand it. […] I don’t understand why this is a store of value. ”
What he says now: In November 2020, worried about coronavirus-related incentives from the U.S. Federal Reserve, Druckenmiller told CNBC that he now loves Bitcoin as a hedge against inflation, and perhaps more than gold:
“It is of great value both for millennia and for new money from the West Coast. […] It has existed for 13 years, and every day it demands more and more stability. […] Honestly, if the gold bet is successful. Bitcoin betting will likely perform better because it is thinner, more flexible, and has a lot of beta.
Larry Fink, CEO of BlackRock
By 2020, more and more institutional investors will start paying attention to cryptocurrencies. “A lot of people are fascinated by this, many are excited,” said the Council on Foreign Relations Larry Fink, CEO of BlackRock, the world’s largest asset manager. in December about bitcoins. His comments came less than two weeks after BlackRock Chief Investment Officer Rick Reader told CNBC that “Bitcoin is not going anywhere. […] Bitcoin will largely replace gold. ”
What he said in 2017: Fink said at a meeting of the Institute of International Finance shortly after BTC hit an all-time high of over $ 5,800 in October 2017: Bitcoin shows how great the demand for money laundering is in the world. [. ..] This is it. This is a money laundering indicator. ”
What he says now: In his dialogue on the Council on Foreign Relations, Fink said, “We look at this as a real thing,” adding that of the three topics recently discussed on the BlackRock website – COVID-19, monetary Bitcoin Politics and Visits were: Each topic contains 3000 for COVID, 3000 for Monetary Policy and 600000 for Bitcoin. “This tells you that Bitcoin has caught the attention and imagination of many people,” Fink said, adding that BTC remains untested and makes up a very small portion of the entire asset market.
Niall Ferguson, economic historian
Ferguson, a senior fellow at the Hoover Institute at Stanford University, is one of the world’s most renowned economic historians. The author of The Rise of Money, he has been studying cryptocurrency since 2014 – and not always positively.