Nouriel Roubini, a professor of economics at the New York University Stern School of Business, called Doctor Doom, once again attacks Blockchain, ICO and bitcoin technology.
The economist’s pseudonym came from his pessimistic forecasts of economics and economy. Now Doom is expected to appear before the Senate banking commission and comment on digital currencies. In his opinion, bitcoin is the “mother of all bubbles”. What’s more, in his opinion, now the main cryptocurrency has entered into the period of its own apocalypse!
The apocalypse according to Doctor Doom
Roubini believes that fans of digital currencies are “crypto-rogue” for whom “the shelter (…) is blockchain, the technology underlying cryptocurrencies, which is now supposedly a cure for all global problems, including poverty, hunger and even illness” .
The waking economist (and not for the first time) mocks the blockchain environment. However, you can find some merits in his speech. It attacks bitcoin technology for its scalability problems. It also reduces the meaning of the blockchain by specifying it as “a better spreadsheet or database”.
Scalability of btc turned out to be the actual problem of the main cryptocurrency, especially at the end of the last speculative bubble. The enormous traffic in the network of blocks caused its final clogging. In practice, thus preventing the use of cryptocurrency transfers.
Recall that btc can process about five transactions per second, and ethereum from 10 to 15. Such giants of the money transfer market as Visa and Mastercard can, however, handle up to more than 5,000 transactions at the same time.
When it comes to crowdfunding tools that help cryptocurrency companies, the economist also attacks the ICO and the entire ecosystem. “Hundreds of other cryptocurrencies [are] invented every day, along with scams called ICOs, which are predominantly designed to circumvent securities laws,” he describes his attitude to the entire market.
What is important, during the debate during the session of the committee, Roubini’s partner will be Peter Van Valkenburgh, research director at Coin Center, a non-profit company that explores the topic of cryptocurrency and decentralized block technology. Therefore, an interesting exchange of opinions may take place.