Nouriel Roubini has some choice words to describe Bitcoin, ICOs, and stablecoins, as he appeared before the U.S. Senate Committee on Banking, Housing, and Urban Affairs Committee.
Roubini not a fan of Bitcoin, ICOs and blockchain
During a recent Senate hearing, Roubini described crypto as the mother of all scams and bubbles. He further added that blockchain technology is the most over-hyped technology ever, as he believes it is nothing glorious.
Here are the top highlights from his speech to the Senate committee.
While others have referred to altcoins “sh*tcoins” in the past, Roubini is now the first person to make use of that word in a congregational setting. During his speech, he made mention of the word roughly 4 times.
According to Roubini, calling altcoins “sh*tcoins” is a disrespect to manure that actually serves a useful purpose as fertilizer. He later apologized for the several mentions of “sh*tcoin” but he added that it is a standard term in the jargon that is used in the crypto space.
He enlightened the Senate on other crypto words
To make his case more understandable, Roubini explained some the crypto terminology that most members of the Senate committee are too familiar with.
Some choice definitions were slightly different from the ones the crypto world knows. Here are some of the standout words and his definition for them.
Crypto-land: “an eco-system of con artists, self-serving peddlers, scammers, carnival barkers, charlatans, and outright criminals.”
HODLers: “suckers who have held on their collapsing cryptocurrencies even after they lost 90% of their value”
Lambos: “the crypto obsession with stealing investors’ money to buy luxury energy-hogging cars”
Whales: “large early crypto billionaires who are stuck with their fake wealth after the suckers of retail investors – who bought into the FOMO of the peak 2017 bubbles – lost 90% of their investments; those suckers are also called BagHolders”
ICOs are taking us back in time
Roubini has a problem with cryptocurrencies, as well as their use and implementation for fundraising.
He believes that ICOs do not represent the future of crowdfunding, but rather a return to the Stone Age for the financial world. as there is no common currency for all of them.
He added that the tokens will create an economy far worse than The Flintstones.
“That is precisely where the ICO charlatans would effectively take us – not to the futuristic world of ‘The Jetsons,’ but to the modern Stone Age world – that is worse than ‘The Flintstones’ – who at least used clam shells as their money and understood the importance of a single numeraire – where all transactions occur through the barter of different tokens or goods. It is time to recognize their utopian rhetoric for what it is: self-serving nonsense meant to separate credulous investors from their hard-earned savings”
Bitcoin less efficient than using an Excel sheet
Roubini didn’t disappoint in bashing Bitcoin on multiple occasion. He stated that it is more centralized that North Korea, adding that it nothing more than the worse version of a Microsoft Excel spreadsheet.
According to him, the hype around Bitcoin should end as it is a slow, energy-inefficient dinosaur and would “never be able to conduct transactions faster or cheaper than an Excel spreadsheet.”
Stablecoins are the biggest scam of all
Despite the praise that stablecoins have received in the crypto world, Roubini shares none of the optimism. He has called them “the biggest scam of all”, highlighting that Tether has still yet to undergo a full audit showing that their USDT token is 100% backed by U.S. Dollars.
He also stated that since Tether was created, it has been used to manipulate the upward price of Bitcoin and other cryptocurrencies, quoting a study conducted by researchers from the University of Texas.