Nouriel Roubini, a prominent critic of cryptocurrencies, has expressed strong disapproval of the recently proposed GENIUS Act, labeling it “reckless” as Bitcoin continues to decline in value. As of Wednesday, Bitcoin was trading at approximately $67,400, reflecting a significant drop of 45 percent from its peak in late October.
Roubini emphasized that Bitcoin does not serve as an effective inflation hedge, describing it instead as a “pseudo-asset class.” He criticized the notion of categorizing Bitcoin, or any cryptocurrency, as a genuine “currency,” calling such claims “bogus.” Roubini has previously characterized Bitcoin as being part of “the mother of all bubbles” and likened it to a “Ponzi Game.”
Further, Roubini pointed out the potential dangers that cryptocurrencies pose to the financial system, particularly as lawmakers advocate for their integration into banks. He ridiculed the GENIUS Act, suggesting it should be renamed the “Reckless Idiot Act.” His primary concern lies in the absence of lender-of-last-resort support and deposit insurance for stablecoins.
Roubini cautioned that proposals from some industry advocates to offer interest on stablecoins could severely undermine the stability of the banking system. Meanwhile, the cryptocurrency market is witnessing significant losses, with Bitcoin”s value plummeting over 40 percent from its all-time high. The typical support mechanisms for the asset appear to have vanished, leaving many dip buyers hesitant.
In contrast, traditional assets like gold have gained traction as effective hedges during this tumultuous period. Stablecoins are also gaining ground in payment applications, further diminishing Bitcoin”s market relevance. Interestingly, this downturn has not stemmed from regulatory crackdowns; instead, Washington has maintained a supportive stance, and major financial institutions have recognized cryptocurrency as a legitimate asset.
Despite these favorable conditions, Bitcoin“s price continues to falter. Investor Robert Kiyosaki shared his perspective, stating that he recently purchased an additional Bitcoin at $67,000. He cited two reasons for his investment: the impending devaluation of the U.S. dollar due to excessive money printing and the nearing completion of Bitcoin”s maximum supply of 21 million coins, which he believes will enhance its value over gold.
This divergence of opinions underscores the current polarization within the cryptocurrency space. While global economic uncertainties and a weakening dollar have contributed to a surge in traditional assets like gold and silver, the cryptocurrency market is experiencing significant outflows, with Bitcoin exchange-traded funds (ETFs) seeing approximately $3.3 billion in withdrawals over the last three months.
Market capitalization for cryptocurrencies has diminished by more than $1 trillion, illustrating the challenges faced by digital assets. The once-promising digital-asset treasury model has begun to unravel, with companies that previously invested in Bitcoin now struggling as their share values decline.












































