Roubini Claims Digital Currencies Are History’s Biggest Scam
Another anti-crypto comment was stated by Nouriel Roubini, a known digital asset critic, during his participation at a hearing issued by the US Senate Committee on the topic of investigating the crypto blockchain sphere. He testified that virtual currencies are the epitome of all finance related scams.
Another remark by Roubini during the hearing claimed that blockchain technology has become the over-hyped technological advancement ever. By comparing the emerging technology to a simple database, Roubini explained it was merely as effective regardless of that technology it was utilized for.
Mr. Doom Slashes Digital Assets Yet Again
Roubini’s strong bearish stance has gained him the nickname, Mr. Doom, however, as a market analyst and expert, he expressed his opinion following last years crypto market bubble burst as living in an apocalyptic aftermath. He described the growing trading volumes of BTC as negative attention and that cryptocurrency facilitates all levels of illegal activity.
During his testimony for the US Senate Committee hearing, Roubini stated that financial criminals and hackers utilized the psychology of FOMO to tap into the ignorance of retail investors in order to sell and dump useless digital assets during the crypto peak. This resulted in a financial crash over the course of several months unseen before in history.
He then proceeded to list all drops in market values for all digital assets and quoted a recent study claiming that more than 80% of ICOs were created as scams. He described the current financial situation as apocalyptic.
Crypto Trading Directed at Profit Not Daily Transactions
In order for a legal tender to be considered valid, Roubini explained that it must act as a source of payment that is must hold store value and act as a serviceable unit of exchange. With the current crypto market being as fickle as it is, Mr. Doom argued that BTC lacks the ability to be a true currency. He also explained that crypto investors are more interested in trading as a means to gain profits than utilize BTC as a daily method of payment.
He noted that the rush to hold and trade digital assets was brought about by the intention of gaining quick profits, not for daily transactions. As crypto mining requires an immense level of computing energy, digital assets are harmful to the environment. In addition, he claimed that transaction costs are so high that organizations such Bitcoin conferences don't even accept BTC as an accepted payment method. The crypto critic also mentioned why digital assets such as Bitcoin cause economic deflation, explaining that with a lack of tangible value, these tokens will inevitably experience significant deflation.