Nouriel Roubini Cheated Crypto Investors In Saying Bitcoin Was A Bad Buy At $58 In April 2013
Nouriel Roubini is famous for a lot of things. The Stern School professor is widely recognized as an economist around the world, while he’s spoke ill of Bitcoin and the rest of the industry. He’s called Ethereum a scam and has even accused builders within blockchain technology as being “greedy kids” for their work. However, the way that he’s treated the industry has put multiple investors at risk for losing out on major gains.
Examining the advice that he gave in 2013, investors could have lost out on a major return. At the time, Bitcoin went from $58 to $6,300, which gave investors a 108x return. At its highest point, Bitcoin managed to reach a height of $20,000, yielding a 344x return on anyone’s investment that had remained that long by December 2017.
On April 16th, 2013, Roubini commented that Bitcoin managed to drop 40% while the community was looking to Gold and Silver. Years later, in a recent repost on October 12th, 2018, Joseph Young reposted it and said that Roubini’s “credibility” was “declining faster than the price of Dentacoin.”
A post on October 13th said,
“As I poke fun of these crypto crazies and lunatics they all come out of their sh*tcoin filled cesspools and hurl nasty insults against me 24/7. So I block them all. And 99% of them are angry white males who are totals life losers. Proves my point on crypto as right wing nuttery.”
After Roubini decided to incorrectly cite that Bitcoin charges a $55 transaction fee (which it is actually $0.06), he even went onto assert that Ethereum qualifies as a pre-mine scam, based on Vitalik Buterin’s wealth as the co-creator of the platform.
“Vitalik Buterin was the ringleader – together with Joe Lubin – of the criminal pre-mining sale/scam that created Ether. They stole 75% of the Ether supply and became instant “millionaires” of fake wealth.”
Clearly, Buterin had to jump in on Twitter, saying,
“I never had 900k ETH. When I had 0.9% of all ETH, the supply was ~75 million. When the price hit $1250, I had considerably less than 0.9%.”
He even poked fun at Roubini passively, leading to Buterin’s post that said,
“I officially predict a financial crisis sometime between now and 2021. Not because I have any special knowledge or even actually think that, but so that I can have a ~25% (or whatever) chance of later being publicly acclaimed as ‘a guru who predicted the last financial crisis’.”
Roubini’s other claims are that cryptocurrencies require no cost or effort to create, which actually contradicts his claim that they charge high transaction fees. If Bitcoin truly cost nothing, then mining to validate and verify the transactions would be cost-free and energy fee, which any miner or investor knows is not true.
Adding to his statements, Roubini has said,
“Crypto was created by a bunch of greedy kids, that make Gordon Gecko look like a saint, pretending to save the world & end poverty. But all they want is to make money literally out of nowhere. Printing sh*tcoins out of fiat & finding enuf suckers to buy it. Total Hypocrites!”
Still, anyone in the industry could see that Roubini isn’t wrong 100% of the time. Even though Bitcoin isn’t guilty of the pump-and-dump schemes, Yobit is, and they a re one of the longest-running exchanges of the world’s market. However, Roubini hasn’t stopped from accusing Coinbase and other major exchanges of charging obscene fees to just say afloat. It doesn’t seem that most of these allegations hold the smallest bit of truth, especially considering that Coinbase recently secured $500 million in funding to bring their company’s value to $8 billion.
“The only way Coinbase & other exchanges can still make some profits after losing 80% of business is by robbing their clients with hidden fees, wide bid-ask spreads, 2% fees 4 Instit & trading against them as front-running, insider trading & other shady practices are widespread.”
These allegations have been further disproved in Japan, South Korea, and other areas, who are improving securities and receiving support from conglomerates and institutions. So far, none of the exchanges in these areas that are run by major corporations have not been victims of security breaches or hacking attacks.
No matter what Roubini has said, whether it has truth or not, blockchain projects still need to improve how they are governed, and the efforts needed for decentralization. Better security measures and protection for investors could make the industry thrive like it hasn’t before. Furthermore, the incorrect information given by Roubini just worsens the industry for everyone.