October 16, 2018 02:14:25
Economist Nouriel Roubini delivered a highly critical testimony before the U.S. Senate Committee on Banking, Housing and Community Affairs during a hearing on cryptocurrency and blockchain this Thursday. Roubini, whose successful prediction of the 2008 housing crisis earned him the nickname ‘Dr. Doom’, was highly critical of blockchain and cryptocurrency, calling digital assets ‘the mother of all scams and bubbles’.
“Scammers, swindlers, criminals, charlatans, insider whales tapped into clueless retail investors’ ‘fear of missing out’, and took them for a ride selling them and dumping on them scammy crappy assets at the peak that then went into a bust and crash,” said Roubini in his opening statement, “like you have not seen in any history of financial bubbles.”
The economist was extremely critical of several aspects of the new digital asset class. Roubini, who describes himself as an expert on asset and credit bubbles, claimed the first signs of trouble came after BTC price neared $20,000. “[This] explains why literally every human being I met between Thanksgiving and Christmas of 2017 asked me first if they should buy them,” said Roubini. “Especially folks with zero financial literacy.”
The hearing is part of US regulatory authorities efforts to figure out how to adapt regulations to the new digital assets market. Roubini’s testimony comes after Bitcoin lost almost ⅔ of its value since the start of the year and ICO activity is seemingly dying out.
Roubini did not shy from painting crypto and blockchain in a negative light, using emotionally charged words such as “bloodbath”, “apocalypse”, and “economic disaster”. “Actually calling this useless vaporware garbage a “shitcoin” is a grave insult to manure that is a most useful, precious and productive good as a fertilizer in agriculture,” said Roubini, before calling blockchain ‘the most overhyped -- and least useful -- technology in human history’. “In practice it is nothing better than a glorified spreadsheet or database.”
Taking a Jab at Ethereum
Roubini did not miss the opportunity to rage about the Ethereum network and ETH, calling them a ‘cartel’ and criticizing them for being too quick to introduce a new token. “It took a century for Coca Cola to create the new Coke and call the old one Coke Classic. But it took three years to Ethereum to dump the first ETH into Ethereum Classic and create and brand new spin-off, ETH.”
Earlier this week the economist lambasted Ethereum co-founder Vitalik Buterin on Twitter, characterizing him as ‘the ring-leader’ of a ‘criminal pre-mining sale/scam’. “They stole 75% of the Ether supply and became instant billionaires,” said Dr. Doom, referring to Buterin and Ethereum co-founder Joe Lubin.
The accusations lead to Buterin to reveal the amount of his personal holdings in ETH, posting an address with detailed information on all his holdings and trades.
“Vitalik, just shut up & speak about stuff that you can claim u know about,” responded Roubini at the time.
- Bitseven.com -