A Senate committee hearing, “Exploring the Cryptocurrency and Blockchain Ecosystem”, set for October 11, heard a testimony from Nouriel Roubini regarding his opinions on blockchain and cryptocurrency.
Roubini, an American economist—perhaps better known known as “Dr. Doom” forhis prediction of the 2008 housing bubble crash—wrotea 30-page testimony calling cryptocurrencythe “mother of all scams” and blockchain the “most over-hyped technology ever”. Ironically, Roubini is a professor of economics at New York University’s Stern School of Business—NYU being one of the firstuniversitiesto offer a major in blockchain technology.
Roubini’s take on cryptocurrency (crypto)and blockchain is nothingnew. Sincecrypto and blockchainbecame widely accessible, criticshaveslammed the new technology,calling it a scam or a bubble waiting to crash. Many businesses and financial executives, such as JPMorgan Chase’s chairman and CEO,Jamie Dimon,have publicly criticizedblockchainand crypto.
But do these sentiments have any real weight? It is difficult to tell. In a recent interview for the Harvard Business Review, Dimon stated that his company was indeed testing and working with the new technologies. Does this mean that after “Dr. Doom” has his day in front of the Senate hearing committee,he too might change his mind?
If a technology is proven to be worthy,then all accusations are null. Haveblockchainand crypto done that? It appears not—thereis still a need for mass adoption and applicationof the technology. Butthat can change.
This time last yearthe world was raving about bitcoin. People who had no business jumping into cryptothrew money at it in fear of missing out on the ‘next big thing’. This obviously unsustainable pattern couldnotcontinue atmassive levels itreached, and any wise investorcashed outat a huge profit before the market price dropped substantially.
Today many people won’t think twice about crypto. With bitcoinconstantly in the news and the holidays approaching,could we see a rise in prices, or another dip, or both? Only time will tell.