Nouriel Roubini, the economist that predicted the 2008 financial crisis and earned the nickname Dr. Doom, recently spoke in an interview about the cryptocurrency market. He has recently gained prominence due to his outspoken views on the cryptocurrency market.
Over the course of the interview, Roubini called cryptocurrency space a bubble, going so far as to call it the mother and father of all financial bubbles. He also predicted that it was going to burst, prefacing it with a disclaimer that he wasn’t “against it”. He stated to CoinTelegraph:
““I’m not against [it], I’m open to any type of innovation, but I’m an expert on financial crises and asset bubbles. And I became famous [by] predicting the global financial crisis — the burst of that bubble.”
He revealed his experience with those close to him questioning him about financial advice on Bitcoin [BTC]. He stated:
“If you bought it at the peak, you lost 70 percent of your value. And it’s typical of all these financial bubbles: They go up until they collapse. And Bitcoin is actually the best [example], because the average cryptocurrency has lost, in the last nine months, more than 90 percent of their value.”
He went on to say that he felt like he was “vindicated and proven right” when speaking about the bubble going bust.
Roubini also addressed issues of conflicts of interest, wherein many cryptocurrency enthusiasts stated that he was spreading misinformation about the technology because he had a short position. Roubini clarified, stating that even if Bitcoin went to the moon or zero, he was “not going to make a penny either way”. He went on to confirm his position as an academic that “speaks his mind”.
Roubini is also known for being a stark disprover of Ethereum, calling it a “scam” on multiple instances. He offered statistical data to prove his point, stating that 81% of all Initial Coin Offerings were a “scam” to begin with, as 11% of them have failed or died. Of those remaining, Roubini stated that the top 10 have lost around 95% of their value. He went on to state:
“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.”
Furthermore, he spoke about the underlying technology of Ethereum known as smart contracts, stating that there was “nothing about them that is smart” as they were buggy. Moreover, he believed that any contract has to be enforced by lawyers “by definition”, stating that putting it in code was “silly to begin with”.
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