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"Bitcoin is the mother or father of all scams"

"Bitcoin is the mother or father of all scams"

The famous economist Nouriel Roubini, known as & # 39; Dr. Doom & # 39; (Doctor Catastrophe) for his infallible predictions, US senators has pointed out the dangers of the most popular cryptocurrency: bitcoin.

Roubini was one of the few who predicted the financial crisis of 2008, CNBC notes.

A few minutes after he testified at a hearing in the US Congress, Roubini alarmed the many threats that digital assets have.

"The cryptocurrency is the mother, or the father, of all scams and bubbles," said the economist and a professor at the University of New York, at a hearing for the US Senate Commission on banks, housing and community affairs. .

The expert on international financial markets said the first warning sign came at the end of last year when the bitcoin approached nearly $ 20,000. "Literally, all the people I met between Thanksgiving and Christmas 2017 asked me if they should buy the cryptocurrency," Roubini confessed.

"Especially people without financial education, individuals who could not distinguish between stocks and bonds, went into a manic madness to capture and capture cryptocurrencies," Roubini said in his testimony.

According to Roubini, "scammers, criminals, charlatans" etc. used the fear of ordinary people to miss an opportunity to make money to deceive them later with assets that ended up in a crisis and "fell within months" like it has not been seen in the entire history of financial bubbles. "

Since the height of the frenzy, bitcoin has fallen by more than 65%, in what Roubini & crypto-apocalypse & # 39; calls. The total market capitalization of cryptocurrencies has dropped by more than 60%, according to data from CoinMarketCap.com. The bitcoin itself declined 6% on 6 October to a minimum of $ 6,125.75.

The economist has also been very aggressive about his underlying technology, known as blockchain or blockchain. Roubini sees almost no reason for its widespread application.

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"Now that the cryptographic massacre is in sight, the new sanctuary of criminal villains is the blockchain, the underlying technology of cryptography that is now the remedy for all global problems, including poverty, famine and even deadly diseases, in fact the chain of blocks is the most exaggerated and least useful technology in the history of mankind, in practice it is no better than a spreadsheet or a glorified database, "he emphasized. .

More about the subject: are millions of people wrong? The most overestimated technology in history

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