Eminent economist Nouriel Roubini will testify before U.S. Senate Committee on Banking, Housing and Urban Affairs with Coin Center director of research Peter Van Valkenburgh today. The hearing titled, ‘Exploring the Cryptocurrency and Blockchain Ecosystem’ is aimed to understand the growing emergence of blockchain and cryptocurrencies.
Roubini will speak on the topic, “Crypto is the Mother of All Scams and (Now Busted) Bubbles, While Blockchain Is The Most Over-Hyped Technology Ever, No Better than a Spreadsheet/Database”, which to be fair does not sound that promising.
The prepared remarks will have him say, “It is clear by now that Bitcoin and other cryptocurrencies represent the mother of all bubbles, which explains why literally every human being I met between Thanksgiving and Christmas of 2017 asked me first if they should buy them. Especially folks with zero financial literacy – individuals who could not tell the difference between stocks and bonds – went into a literal manic frenzy of Bitcoin and Crypto buying.”
Not limiting himself, to cryptocurrencies and their fraudulence, Roubini will also go for the jugular- blockchain, the underlying technology through on which cryptocurrencies are based on. Not holding back he goes on to say, “Now that the crypto bloodbath is in full view the new refuge of the crypto scoundrels is “blockchain”, the technology underlying crypto that is now alleged to be the cure of all global problems, including poverty, famines and even diseases. But as discussed in detail below blockchain is the most over-hyped – and least useful – technology in human history: in practice it is nothing better than a glorified spreadsheet or database.”
Gathering ammunition, the economist refers to when Vitalik Buterin- the founder of Ethereum- stated that there is a fundamental ‘inconsistent trinity in blockchain’: you cannot have at the same time scalability, decentralization and security.
Although, Valkenburgh will also echo similar sentiments, he will state that blockchain is not a “solution to any number of social, economic, organizational or cybersecurity problems.” He will add that “blockchain is a vague and undefined buzzword.” However, where the testimony differs, is that Valkenburgh will seek ‘a light-touch approach’ to regulation.
A ‘light-touch approach’ to cryptocurrencies is a popular approach, many politicians in the United States government are taking. Earlier Crypto-News India had reported on the US Congressman Representative of Ohio Warren Davidson saying, “The big thing is that we need a light touch regulatory framework to provide certainty in the ICO market. The Securities and Exchange Commission (SEC) started to weigh in last week and communicated that Ether was considered a commodity and not a security. So, there has been some concern since the SEC started to regulate. Everything starts to look like a security to a securities regulator. We want to make sure that the United States capital markets stay strong and vibrant and more ways to do that is to provide certainty.”
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