Nouriel Roubini, American economist and chairman of Roubini Macro Associates LLC, read a 37-page report on bitcoin and cryptocurrencies before the U.S. Senate yesterday. What he said created a lot of anger among crypto and blockchain enthusiasts around the world.
Dr. Doom successfully predicted the 2008 financial crisis
On September 7, 2006, Roubini, nicknamed “Dr. Doom,” announced that a crisis was brewing. He warned the U.S. was likely to face a once-in-a-lifetime housing bust and finally, a deep recession. It turned out he was right. And yesterday, the prophet of doom unleashed a verbal assault on crypto and blockchain that will not be soon forgotten.
Cryptocurrency is the mother of all scams
Mr. Roubini read his report titled “Exploring the Cryptocurrency and Blockchain Ecosystem” before the US Senate’s Committee on Banking, Housing, and Community Affairs.
Roubini, who in the past referred to Bitcoin as “the biggest bubble in human history,” “bullshit,” “Ponzi scheme” and “mother of all bubbles” did not mince his words during yesterday’s hearing.
He does not think the world has benefited over the last decade since blockchain’s launch. For Roubini, the blockchain is nothing but an unnecessary and useless technology. It will never go anywhere because of multiple issues. Anyway, it’s not going to become another technological breakthrough because it’s useless, according to him.
However, his comments revealed a broad lack of understanding of blockchain technology. A common pattern of his answers is that the current banking and fintech systems are already solving all the problems that blockchain is trying to solve, with even better results.
According to him, only criminals use crypto, most tokens are non-compliant securities, and mining is a huge harm to the environment.
Roubini sounded alarms of digital assets and blockchain.
The self-proclaimed expert on credit bubbles and their bust said the first warning sign appeared after the end of last year when the price of bitcoin reached an all-time high of almost $ 20,000. Roubini told senators that everyone he met during that time asked him whether they should invest in crypto.