Advocates would disagree with Roubini, but even the most hardened of fans still accept that more needs to be done with this new technology. Peter Vessenes, the chairman of the Bitcoin Foundation, which is an organization set up to promote the digital currency, believes that bitcoin is truly "disruptive" and "engaging" but also warns of risks assocated with the currency.
"There are botnet operators, hackers, and Ponzi-scheme runners floating around our space," Vessenes states on the foundation's website.
Bitcoin regulation has been a hot topic since its price started to rise at the beginning of 2013. Subpoenas have been sent to several companies associated with bitcoin over the last year, sites have been shut down and arrests have even been made at some exchanges. However, it also received favorable comments by regulatory officials at a U.S. Senate hearing in November and former Federal Reserve Vice Chairman Alan Blinder has been quoted as saying that the cryptocurrency shows "promise".
(Read more: Another bitcoin site bites the dust)
Japan last week deemed the digital cash to be more of a commodity than a currency and Thailand has moved to ban the digital currency altogether. German authorities have said it can be classed as a unit of account akin to "private money" whilst U.K. officials are busy stripping away taxes associated with the new technology.
Away from the regulatory issues, bitcoin offers a marketing tool for some companies. Billionaire entrepreneur Richard Branson announced that his commercial spaceflight venture would accept bitcoin as payment. Meanwhile a university in Cyprus, a sustainable grocer, a travel website, a delicatessen and a guitar repair shop are just some of the smaller businesses that have received attention online thanks to their decisions to accept the cryptocurrency.
Despite this, Roubini remains unconvinced of bitcoin's merits for retailers. He deemed that it would only benefit criminal activities and said those that do accept it would immediately convert it right back into a fiat currency like the U.S. dollar. "Bitcoin price volatility implies huge market risk," he said.
—By CNBC.com's Matt Clinch. Follow him on Twitter