The famous economist, Nouriel Roubini, claims cryptocurrency to be the “mother of all scams.”
Nouriel Roubini stood before US Senate during a hearing on Banking, Housing and Community Affairs. Roubini read his testimony on “Exploring the Cryptocurrency and Blockchain Ecosystem.”
In his scathing testimony, Roubini had nothing positive to say about cryptocurrency.
In fact, his lengthy speech plainly stated why he believes crypto to be a scam and blockchain to be “the most overhyped technology ever.” Nouriel Roubini is a notorious cryptocurrency critic.
Though these claims are unsurprising coming from him, they are controversial, none-the-less. First and foremost, who is Nouriel Roubini?
Nouriel Roubini: The Man Behind The Testimony
If you haven’t heard of Nouriel Roubini, you may be wondering who he is and why he’s qualified to make such claims. So, here’s a little background on the economist.
Roubini is a Professor of Economics at NYU’s Stern School of Business. He is an expert in many areas including the global economy, international finance, asset and credit bubbles, and financial crisis.
Roubini is also known for predicting the Global Financial Crisis of 2007-2009. Because much of the professor’s research and writings (he is also a published author) surround the topics of asset bubbles and financial crisis, it’s easy to understand why cryptocurrency became a topic of interest.
The Testimony: Roubini Vs. Crypto
The economist’s pre-written testimony went into great length about all of the unfavorable qualities which he believes cryptocurrency to have.
In fact, he prefaced the entire thing with the following: “Crypto is the mother of all scams and (now busted) bubbles while blockchain is the most over-hyped technology ever.”
He then went on to outline a number of reasons he believes cryptocurrency to be an over-glamorized scam. “No asset class in human history has ever experienced such a rapid boom and total utter bust and implosion…” he stated while discussing the burst of the Bitcoin bubble.
Additionally, he believes cryptocurrency to be unscalable because, as he puts it, it “is not money.” Not only did Roubini completely slam cryptocurrency in his testimony, but he also discounted blockchain technology as a valuable resource altogether.
Blockchain On Trial
Blockchain technology is regarded by many as the way of the future. Countless businesses are adopting blockchain technology, and it’s use-cases continue to grow. Roubini is not convinced.
“The real revolution in financial services is FinTech, and it has nothing to do with blockchain or crypto”. Roubini believes blockchain technology to be lacking security. Furthermore, he believes decentralization to be a “myth.”
Roubini went on to site all of the vulnerabilities he believes the world of digital currency to have. For instance, “Pump n dump, spoofing, wash trading, front-running, exchanges, conflicts of interest, tether scam” the professor listed.
Roubini’s Claims: Valid or Outlandish?
Roubini’s extensive slandering of cryptocurrency and blockchain are a tough pill for the crypto community to swallow.
Though some of the negative qualities that he pointed out during his testimony may be valid, those who have profited from cryptocurrency and benefitted from blockchain technology may find his thesis hard to believe.