People, like only humans, stick to their beloved faith – even in the face of an overwhelming paradox. This is why returns, that is, public action aimed at refuting a previous opinion, are so rare. However, this year there have been several notable changes in the heart regarding Bitcoin (BTC) and other cryptocurrencies – and this may have encouraged BTC to rise to record price levels. Here are eight of the most memorable transitions of the year.
Nouriel Roubini, economist
The harshest critics of cryptocurrency will retire in 2020. Roubini, a professor of economics at New York University who became known 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 Roubini’s testimony to the US Senate circulated: “Crypto is the mother of all scammers and bubbles (now trapped).” He also called blockchain “the most overrated 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, the Mississippi Bubble and the South Sea Bubble.” He noted that the increase in the price of bitcoin was two or three times greater than that seen in previous bubbles, followed by “collapse and collapse followed quickly, anger and deeper.” Bitcoin was somewhat stagnant at the time and sold around $ 6,300.
What he said recently: In an interview on November 6, 2020, Rubleini admitted that Bitcoin, which at the time sold for around $ 15,500, could qualify as a “partial store of value”, mainly due to the algorithm that limited the offer to 21 million BTC . Of course, Roubini also announced that bitcoins are “not scalable, secure, decentralized, not a currency”, and that within three years they will be irrelevant or “crowded” the central bank’s digital currencies.
However, everything is relative. The partial withdrawal prompted economic historian Professor Niall Ferguson to comment: “If I loved exaggerating as much as [Rubeny], I would call it the greatest transformation since St. Paul.”
Stanley Druckenmiller, investor
Investor and hedge fund manager Stanley Druckenmiller – the man who, along with George Soros, “broke the Bank of England” in 1992 by investing in the British pound, seems to have abandoned his previous doubts about cryptocurrencies by 2020.
“I see Bitcoin as the solution to my problem,” Druckmiller told The New York Economic Club in June 2019. “I do not understand why we need this thing. […] I do not want to shorten it, I do not want to renew it. […] I do not understand why this is a value store. ”
What he says now: In November 2020, concerned about the US Federal Reserve’s efforts to spur the spread of the Covid virus, Druckenmiller told CNBC that he now loves bitcoin as a hedge against inflation, and perhaps more than gold:
“It is as attractive as a store with value for both millennia and new money from the west coast. […] It has been around for 13 years and strengthens the stability of the brand every day. […] Honestly, if the gold bet is successful. Bitcoin betting is likely to perform better because it is thinner, more fluid and has a lot of beta. ”
Larry Fink, CEO of BlackRock
More and more institutional investors are starting to pay attention to cryptocurrencies by 2020. “Many people are fascinated by this, many people are in awe of it,” said 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’s chief investment officer Rick Reeder told CNBC that “Bitcoin is not going anywhere. […] Bitcoin will largely replace gold. ”
What he said in 2017: At a meeting of the Institute of International Finance, shortly after BTC reached a full-time high of over $ 5,800 in October 2017, Fink said: “Bitcoin shows how much demand there is for money laundering in the world. [… “That’s all. This is a money laundering indicator.”
What he says now: In his dialogue on the Council on Foreign Relations, Fink said, “We see this as the real thing,” adding that the three topics recently discussed on the BlackRock website – COVID-19, monetary policy and bitcoin – visits were: For each topic 3,000 on COVID, 3,000 on monetary policy and 600,000 for bitcoin. “This tells you that Bitcoin has captured the attention and imagination of many people,” Fink said, adding that BTC remains untested and makes up a very small fraction of the entire asset market.
Niall Ferguson, economic historian
Ferguson, a senior fellow at the Hoover Institution at Stanford University, is one of the world’s most renowned economic historians. The author of the book “The Rise of Money”, since 2014, he has affected the cryptocurrency negatively – not always positively.