Brief Article: "The Coming End of Crypto"

Nouriel Roubini (Senior Advisor at Hudson Bay Capital and Professor Emeritus of Economics at New York University)
Date: February 3, 2026

1) The Fall of the "Digital Gold" Narrative

The author believes that the recent crash in Bitcoin and cryptocurrency prices confirms that they are neither digital gold nor a hedge asset, but rather highly volatile assets linked to high-risk assets like speculative stocks. While gold has surged amid geopolitical and financial tensions, Bitcoin has plummeted sharply, revealing its failure to perform any real protective or monetary role.

2) Cryptocurrencies Fail as Currency or Economic Asset

Roubini argues that describing cryptocurrencies as currencies is misleading; they are not units of account, scalable means of payment, or stable stores of value. Even in countries that have officially adopted Bitcoin, its use remains extremely limited. They are also not productive assets because they do not generate income or relate to actual economic or industrial activity.

3) Stablecoins Are the Only Useful Application

After nearly 17 years since Bitcoin's launch, the author concludes that the only practical application in the crypto world is stablecoins, which are essentially digital versions of traditional money digitized decades ago. Claims about decentralization are superficial, as most of these systems are centralized, especially controlled, and subject to limited authorities, just like the traditional financial system.

4) Serious Regulatory and Financial Risks

The author strongly criticizes the new American regulations that eased restrictions on cryptocurrencies, considering them a rehash of the failed "free banking" experiment of the 19th century. Allowing stablecoins to operate without strict banking regulation or central bank protections opens the door to financial panic and mass withdrawals that threaten financial stability.

5) Summary: Gradual Development, Not a Revolution

The author affirms that the future of money and payments will be a gradual evolution within existing frameworks, not a revolutionary crypto upheaval. Trust, financial stability, and the role of banks remain pillars that cannot be bypassed without significant economic and political costs.

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