Crypto Update: Cryptocurrencies Fall From Highs, Roubini Rejects Cryptocurrencies

Roubini Dissents in Brooklyn and Crowd Reacts

Though he likely didn’t affect the value of cryptocurrencies, Nouriel Roubini, the American economist, highlighted his skepticism of cryptocurrencies again late last week during a panel discussion in which he was invited to participate at the Fluidity Summit in Brooklyn. Speaking in New York as the person who would deliver a contrarian viewpoint to a large group of cryptocurrency enthusiasts, Roubini didn’t disappoint his fans when it came to bringing forth an opinion of digital assets which clearly wouldn’t make friends.

Roubini maintains that the future of payments and cryptocurrencies – should they survive – will be via a centralized system of transactions and not a decentralized system. Roubini did express his belief that the FinTech industry will produce revolutionary changes in the marketplace but went onto say businesses such as PayPal, Square, and Alipay among others were on the correct path. He also described Initial Coin Offerings as Initial Coin Scams – thus calling them ICS’s instead of ICO’s.

The organizers of the event invited Roubini with the purpose of acting as the antidote for those who may be ‘drinking too much Kool-Aid’. However, also participating in the event was Joseph Lubin who is a founder of Ethereum and an officer of ConsenSys.

Nvidia Concerns about Cryptocurrency Mining

In corporate news, the semiconductor company Nvidia has said that it believes its profits will decline as cryptocurrency mining decreases. The company lost share value before going into the weekend after it issued its outlook regarding a drop in sales.

Nvidia is the market leader providing chips for miners – the news not only sparked concerns among its investors but raised the eyebrows for some in the cryptocurrency community.

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Casting Blame on Bitcoin’s Decline Not as Easy as Said

Although many believe Bitcoin’s precipitous fall on Friday was an effect of the raid by South Korean officials on the UpBit offices, the drop in the value of Bitcoin because of this raid by regulators cannot be actually measured, and it can actually be debated.

Prior to the decline in value on Friday for Bitcoin, the cryptocurrency had been hit since the middle of last week with a downturn. The value of the digital asset reached 9800.00 U.S Dollars plus last Sunday on the 6^th of May but has found a rather slippery path since. Four days of selling for Bitcoin precipitated Friday’s sharp falls on the 11^th. And while the price action of Bitcoin on Friday was the headline maker, the previous four days of declines likely had an effect on broad sentiment which likely did not help speculative fervor, nor its trend.

Bitcoin is now within the 8600.00 per coin vicinity and trading in the coming days may see a retest of April values in which the psychological support level of 8000.00 U.S Dollars could become an important factor. For traders who believe a reversal will come in the short term a solid resistance to aim for maybe the 9300.00 juncture.

Yaron Mazor is a senior analyst at SuperTraderTV.

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