Economist: cryptocurrencies “could go to the moon to go to zero”

Karen Miller

bitcoinAn eminent economist who recently described cryptocurrencies as “the mother of all scams” has shared more of his views on the topic.

Nouriel Roubini, who was described by many as having forecasted that the financial crisis would occur back in 2008, gave a wide-ranging interview with the industry media outlet Cointelegraph in which he said that cryptocurrency’s centralised platforms were not all they were made out to be.

Roubini, who is a professor at the Stern School of Business at New York University, is known as “Dr Doom” due to his propensity to forecast cataclysmic events.

He lived up to his reputation during the interview with the site, which took place in Las Vegas at the BlockShow Americas – a conference discussing blockchain technology.

In it, he claimed that crypto was simply a “bubble” and pointed to his experience of predicting the financial crash as evidence

“I’m not against [it], I’m open to any type of innovation, but I’m an expert on financial crises and asset bubbles”, he said.

“And I became famous [by] predicting the global financial crisis — the burst of that bubble.

“I can see a bubble when there is one — and to me, this entire space has been the mother and the father of all financial bubbles and now it’s [going to] burst.”

Roubini also described specific cryptocurrencies, including Ethereum, as being “a bit of a scam”.

“I would say 99 percent of cryptocurrencies are worth zero”, he said.

“Just because some people believe in something alternative to fiat currencies — alternative to gold — then, like collectables, some people are going to hold some Bitcoin. Bitcoin is not going to disappear.

“But, you know, Ethereum is a bubble and it’s a bit of a scam — it’s worth nothing — XRP, all the other ones, they’re all going bust.”

The interviewer, the site’s Assistant Editor-in-Chief Catherine Ross, asked Roubini for his reasons for thinking this.

In response, Roubini said that the contracts used were not up to scratch.

“It’s a scam because the technology. They talk about smart contracts — there’s nothing about them that is smart, they’re all buggy. They’re not real contracts because you have to enforce certain contracts, you cannot have just the code.”

Despite being known as the “Dr Doom” who predicted the financial crash, it appears in the interview that Roubini still believes in the power of ordinary financial systems, especially when compared to crypto as an alternative.

While acknowledging that traditional financial systems are centralised, he also said they were “secure and they’re scalable”.

He even said that the use of crypto exchanges and the existence of miners “centralised as an oligopoly” made it “worse than North Korea in terms of income and wealth inequality”.

Roubini has long since been cynical of cryptocurrencies, and this interview cemented his reputation as a hardliner against them. In the past, he has alluded to cryptocurrency being a fraud – claiming in front of the US Congress just this week that it was the “mother or father of all scams and bubbles”.


Karen Miller

Latest news

EUR/USD overbought? Pair uncertain after 1.1916 hit
The single European currency has done well for itself in recent weeks and even managed to hit some new highs for the year. Read more
GBP/USD stuck at 1.31 for the week?
Sterling seems destined to remain close to the 1. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2012 Global CFD and FX broker
Number One Broker
Best FOREX BROKER Visit broker
5
#2 Forex Broker Pepperstone LogoYour capital is at risk Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
5
#3 Plus500 Logo80.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Broker
Number One Broker
Best Trading App Visit broker
5
#4 Your capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
5
#5 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
5

    Forex Fraud Certified Brokers

    HYCM Logo
    City Index Logo
    BlackBull Markets Small Logo
    IQ Option Logo
    skilling logo
    XTB Logo
    VantageFX Small Logo
    OctaFX Logo
    Plus500 Small Logo
    Exness Small Logo
    FXTM Logo
    LegacyFX Small Logo
    Pepperstone
    Swissquote logo
    Oanda Small Logo
    XM Logo
    ATFX Logo
    iTrader Logo