Nouriel Roubini Says Blockchain Is the Least Useful Technology..in Human History
Nouriel Roubini Thinks Blockchain Is the Least Useful Technology
Nouriel Roubini is known for being the economist that predicted the financial crisis back in 2007 and 2008. Since that time, he has also been predicting different economic outcomes all around the world, although not as he would have expected in some cases.
During the last days, Roubini has been very interested in the cryptocurrency market, but not in a positive way. He had some discussions with Vitalik Buterin, Ethereum’s co-founder, and has also participated from a hearing at the US Committee on Banking, Housing and Urban Affairs.
Before the hearing, he presented a document in which he gives different definitions that are worth mentioning. He said that Bitcoin has been used for criminals in order to perform illegal activities, including drug transactions, tax evasion or money laundering. He has also attacked altcoins.
There are several financial leaders that do not like or support Bitcoin but they do appreciate the benefits of blockchain technology. However, Roubini believes that blockchain technology is not useful at all.
On the mater, he commented:
“Now that the crypto bloodbath is in full view the new refuge of the crypto scoundrels is ‘blockchain.’ […] But… blockchain is the most over-hyped-and least useful-technology in human history: in practice, it is nothing better than a glorified spreadsheet or database.”
He has also mentioned about cryptocurrency millionaires that moved to Puerto Rico after earning important sums of money and avoid paying federal taxes. He mentions that they are emblematic of a widespread culture that pretends to care about poor individuals and underbanked so as to enrich themselves.
Finally, he wrote about miners and compared cryptocurrencies and blockchain with the internet. He said that miners in the cryptocurrency space are not transparent and that work in countries that are totally authoritarian such as Russia and China. He questioned whether it is possible to trust ‘shady anonymous concentrated oligopolists’ that operate in countries without rule of law rather than central banks.
In addition to it, he explained that cryptocurrencies and blockchain technology are not like the early years of the internet in which it was booming in many different industries. For him, these technologies are currently collapsing and imploding in different dimensions.
“It is a failing set of technologies,” he wrote.