Nouriel Roubini, a former economist in the Clinton administration, which predicted the financial crisis of 2008, said that in the financial services industry is undergoing a revolution, but the blockchain, “untested, utopian technology” is not a catalyst.
On Friday, in the edition of Project Syndicate, Roubini has published his material in which he said that the potential of the blockchain is overrated, the idea that cryptocurrency can replace conventional, Fiat currency called “totally idiotic”.
Roubini before were critical of bitcoin and even called him a fraudulent scheme , but in a recent publication he hit not only on the cryptocurrencies, but also to the technology of the underlying blockchain.
Professor at new York University, who also has experience at the International monetary Fund and Federal reserve Fund and world Bank, said that the supporters of the blockchain technology mistakenly compare this technology with the Internet in its first years of existence
He believes that unlike the Internet, this technology is not so accessible and it has only one use – a cryptocurrency that, in his opinion, are a failed experiment, based on the false claim that they can not be devalued by governments and banks:
According to his supporters, bitcoin has a limited supply of 21 million, so its value should not decrease as it usually happens with Fiat currencies after the next issue. But this is not true, given that bitcoin already three times experienced something similar: Bitcoin, Cash, Litecoin, and Bitcoin Gold. In addition, every day there are hundreds of other cryptocurrencies, add to it a fraudulent scheme under the name of ICO, which is mainly designed to circumvent the securities laws.
Billionaire George Soros, agrees with the criticism of Roubini. This week at the world economic forum in Davos, he said that the lack of stable values of the cryptocurrencies do not allow them to be currencies, and the current market capitalization of cryptocurrency market is more reminiscent of a bubble. But unlike Roubini, Soros positively disposed towards blockchain technology and considers its future.