Roubini Claims ICOs are Scams and Blockchain is Overrated
Among renowned economists, Nouriel Roubini has accomplished various achievements throughout his career and is now taking a stance in the public eye as one of the most notable crypto and blockchain critics. The American-Turkish industry figure has authored over seventy papers discussing issues in international macroeconomy as well as served as a New York University lecturer. In addition, he holds the position of Chief Executive Officer of his own company, Roubini Macro Associates.
However in recent years, Roubini openly challenged the notion of digital currency and blockchain technologies referring to them as scams, and possibly the greatest fraud of our generation as reported by Forbes. During his panel attendance at the BlockShow Conference in LA this August, Forbes spokesperson, Naeem Aslam managed to discuss his thoughts.
Roubini’s Stance Regarding Blockchain Technology
After his participation as a panelist, Aslam managed to discuss one on one with the crypto critic regarding his thoughts on recent crypto news. In response to learning the US regulator, SEC, has rejected another Bitcoin ETF, Roubini stated that he was not surprised and that unlike real assets, this was just a fraud. This sentiment has been echoed by many industry figures including Andreas Antonopoulos who recently remarked during a posted video that Bitcoin ETFs were not a good idea and could likely damage the crypto ecosystem.
When asked about his views on blockchain tech, Roubini described it as an overrated useless development with too many problems regarding scalability. He also believes that the block system is far too slow, a problem that simply won't be overcome. He also noted that although blockchain technology thrives on decentralization, the cryptocurrency exchanges that utilize this technology are mainly centralized. Those very exchanges are experiencing cyber attacks due to lack of security as well as their centralized nature facilitating a single access points.
Critics of this viewpoint believe that it is important to remember these technologies are all still very new, and that although initially exchanges resorted to a centralized approach, the industry is gearing towards a major shift with a growing number of decentralized crypto exchanges emerging.
Roubini’s Perspective On ICOs
Although Roubini has made his opinion of Blockchain technology very clear, it pales in comparison to what his views are on the notion of Initial Coin Offerings. When questioned about Ether in relation to the creation of tokens and ICOs, Roubini clearly declared that he believes the entire notion of ICOs is a scam in which investors are robbed by those accepting funds for valueless projects.
It is not uncommon for Initial Coin Offering projects to come to a halt and eventually fizzle. Roubini also makes a valid point noting the frequency of cyber scams occuring within the ICO industry. However crypto advocates would suggest that beyond these scammer attempts, valuable and innovative projects exists and without the fundraising design of ICOs, many legitimate ideas and solutions would never come to life. When it comes to new and emerging industries such as blockchain and crypto, its highly encouraged to understand both criticisms and promotions for a more complete perspective. Roubini channels his ideas through the perspective of an economist which should then be used as a means to better develop and advance such technologies in hopes of changing even the most stubborn of viewpoints.