US Senate Committe on Banking, Housing and Urban Affairs open session hearing on "Exploring the Cryptocurrency and Blockchain Ecosystem"
Lott Chidawaya
![Lott Chidawaya]()
Lott Chidawaya
International Monetary Fund - Senior Financial Sector Expert, Finance Department
In yesterday's hearing, I found Professor Roubini's presentation refreshing as his testimony addressed the fundamental issues with crypto's and the blockchain ecosystem. Roubini's views are diametrically opposed to the optimistic views of Crypto high priests & priestesses.
Roubini's 10 Key Points:
- Crypto is not money, not scalable
- Blockchain is most overhyped technology ever, no better than a glorified spreadsheet or database
- No security in crypto-currencies
- Decentralization is a self-serving ideology
- Decentralization is a myth: massive centralization and concentration of oligopolistic power and cartels among miners, exchanges, developers, wealth holders
- Crypto is not the internet nor will ever be
- ICOs are not compliant securities when they aren’t outright scams
- Massive manipulation: pump n dump, spoofing, wash trading, front running, exchanges conflicts of interest, tether scam
- No Killer App in Crypto/Blockchain After A Decade: Only Ponzi Schemes
- The energy consumption of crypto is an environmental disaster
London Business School | Risk & Derivatives specialist | Model risk specialist | Mentor&Coach | IITian (IITK)
6yProfessor Roubini has a soothsayer's stature in global economics and he also correctly predicted the 2008 crisis and the related credit bubble. No doubt crypto enthusiasts must take heed from professor Roubini but innovations have always risen through the cracks of criticism; albeit these innovations have to go through several transformations before they become successful.