Nouriel Roubini’s “The Big Blockchain Lie” Takes His Crypto Negativity to A New Heights
Most of the financial and cryptocurrency industry is familiar with the rantings of Nouriel Roubini. He has been vocal for years, voicing his aggressive and negative stance on cryptocurrency, sometimes to the point of making erroneous predictions in an effort to deter anyone else from investing. He even has gone to Washington DC to speak about his position on it and got involved with a heated Twitter feud over the last few days. Now, he’s at is again with a new article on the matter.
While the median crypto barking dog on twitter has 0 followers I have a global platform: my monthly @ProSyn columns translated in 10 languages & distributed to 300 million readers in 100 countries.
— Nouriel Roubini (@Nouriel) October 15, 2018
His article, titled “The Big Blockchain Lie,” can be found on Project Syndicate, which features “exclusive contributions by prominent political leaders, policymakers, scholars, business leaders, and civic activists from around the world.” Roubini has used it as an opportunity to again attack cryptocurrency, even starting the article by calling decentralization “just a ruse to separate retail investors from their hard-earned real money.”
He believes that, even with the bear market that could deter consumers, they are somehow holding onto the hope that blockchain technology can save them. He writes, “Blockchain has been heralded as a potential panacea for everything from poverty and famine to cancer. In fact, it is the most overhyped – and least useful – technology in human history.”
The whole article discusses all of the ways that blockchain technology falls short, calling it “nothing more than a glorified spreadsheet.” He seems to poke fun at the investors and developers that support it and suggests that the perfect blockchain worked would cause “anarchist or libertarian decentralization.”
Anyone can see the ways that blockchain technology can influenced multiple industries around the world, especially helping with the food industry and shipping industry. However, Roubini calls the changes within these areas to be “a familiar form of economic hell.” He called out the industry for being man-centered, regardless of the reasons that women may have abstained until now.
Ultimately, Roubini believes that the best-case scenario would be if blockchain was no more than a myth. In his article, he claims,
“As for blockchain itself, there is no institution under the sun – bank, corporation, non-governmental organization, or government agency – that would put its balance sheet or register of transactions, trades, and interactions with clients and suppliers on public decentralized peer-to-peer permissionless ledgers. There is no good reason why such proprietary and highly valuable information should be recorded publicly.”
Despite the clear connection with blockchain technology, he said that “distributed ledger technology has nothing to do with it. He says that DLT are private, decentralized, and controlled, which would make them only a blockchain for the name of the ledger. After the electronic spreadsheet was introduced in 1979, Roubini believes that blockchain is no better.
Insulting anyone that would decide to ultimately utilize blockchain technology for themselves, Roubini concluded by saying,
“No serious institution would ever allow its transactions to be verified by an anonymous cartel operating from the shadows of the world’s authoritarian kleptocracies. So, it is no surprise that whenever ‘blockchain’ has been piloted in a traditional setting, it has either been thrown in the trash bin or turned into a private permissioned database that is nothing more than an Excel spreadsheet or a database with a misleading name.”